Metrobank profit up 15% in Q1

MANILA, Philippines — Metropolitan Bank & Trust Co. (Metrobank) recorded a 15 percent increase in earnings to P6.8 billion in the first quarter from P5.9 billion in the same quarter last year on the back of consistent loan growth and margin expansion, higher fee-based income, and prudent operational expenditures, according to its president Fabian Dee.

“The year is starting on the right track, with performance metrics showing expansion in existing income streams, improving productivity, and most importantly, quality growth,” Dee said.

Dee said the bank was able to sustain its strong earnings due to the country’s robust economic expansion.

“We remain optimistic on the prospects of the economy, which should be supportive of the thriving banking industry. Against this backdrop, we will continue to focus on key initiatives that will impact customer experience, efficiency, governance, and sustain profitability for the bank,” he said.

The country’s second largest lender in terms of assets reported a 12 percent increase in net interest income to P18.1 billion in the first quarter from P16.1 billion in the same quarter last year and accounted for 74 percent of the bank’s total revenues of P24.6 billion.

Rounding out the bank’s growth trajectory was its non-interest income, which rose by eight percent to P6.5 billion in the first quarter from P6 billion a year ago amid the nine percent increase in service fees and commissions to P3.1 billion, P1.5 billion in net trading and foreign exchange gains, and P1.6 billion in miscellaneous income.

“Fee-related revenues as well as trading income continue to benefit from increased customer business in fixed income and foreign exchange,” the bank said.

Metrobank’s operating expenses reached P13.5 billion, with manpower-related costs accounting for P5.4 billion. The balance went to systems and process improvements, as well as continuous investments in information technology.

The bank’s loan book expanded by 8.5 percent to P1.4 trillion, led by the commercial loan segment comprised of top corporate accounts, middle market as well as small and medium enterprises. Its deposit base was steady at P1.6 trillion.

Metrobank’s net interest margin for the period likewise attained notable improvement, rising nine basis points to 3.84 percent, while asset quality metrics remained healthy, with non-performing loans (NPL) ratio slightly up at 1.5 percent.