Loan growth pushes up Metrobank’s Q3 bottom-line

MANILA, Philippines — Metropolitan Bank & Trust Co. reported their net income ballooned in the third quarter due in part to growth in its lending portfolio facilitated by the domestic economy’s reopening.

In a disclosure sent to the Philippine Stock Exchange on Friday, Metrobank said its net income surged 77% year-on-year to P7.8 billion from July to September.

The bank’s earnings in the first nine months soared 45% on annual basis to P23.4 billion.

“We improved our profitability by taking on opportunities as the economy reopened while keeping our balance sheet strong and improving efficiency level,” Fabian Dee, company president, said.

Metrobank said gross loans inched up 12% year-on-year to P1.4 trillion from January to September, driven by double-digit growth in corporate and commercial lending and credit card payments.

Broken down, non-performing loans, or debts that remain unpaid 30 days past the due date, stood at 2.1% year-to-date, considered manageable since it figured below the banking sector’s 3.6% NPL ratio back in August. Restructured loans accounted for 0.5% of total loans.

Metrobank’s NPL cover stood at 172% which allowed the bank to cut provisions for bad loans by 43% in the first nine months of the year.

“Our position of strength, and substantial reserves will enable us to continue on supporting our customers as they navigate the impact of the global external headwinds,” Dee added.

Fee-based income, a resilient source of growth for many banks at the onset of the pandemic, rose 15%, according to Metrobank.

The bank’s total deposits grew 11% to P2 trillion, as current account and savings account deposits rose 5%.

Operating expenses amounted to P44.5 billion in the first nine months of the year.

As of 2:05 p.m. Friday, shares in Metrobank were trading down 0.48% at P51.9 apiece.