A stable net interest income supported by recovery in loans, modest rise in non-interest income, and marginal costs growth buoyed Metrobank’s performance in the first quarter of this year, according to the bank’s disclosure.
Metrobank said its net income in the first quarter reached P8 billion and its asset quality remains health, prompting further decline in provisions.
“We are encouraged by the sustained pick-up in economic activities as Metrobank stands ready to support our clients in their funding plans and investment needs,” said Metrobank President Fabian S. Dee. “The strategies that we have put in place should enable the Bank to achieve sustainable growth along with the expanding domestic economy.”
Gross loans rose by 5% YoY to P1.3 trillion, led by a robust 10% expansion in corporate lending and 8% increase in credit card receivables. Loan growth was supported by a 17% jump in total deposits to P2.0 trillion. CASA deposits rose by 10%, resulting in CASA ratio of 71%.
The sustained rise in low-cost CASA helped further lower funding cost. As a result, net interest income reached P19.3 billion.
Metrobank’s non-interest income up 5%
Meanwhile, non-interest income went up by 5%, driven by a 7% jump in service fees and commissions. Even with market volatility in the first quarter, the Bank was able to generate P2.3 billion in trading and FX gains.
Operating costs remained under control, inching up by just 1% to P14.9 billion reflecting the ongoing efforts to enhance productivity and operational efficiency. As such, cost-to-income ratio improved to 54.1% from 54.6% in the same period last year.
Growth was not at the expense of quality as non-performing loans (NPLs) declined by 5% to P27.0 billion. The resulting NPL ratio improved to 2.2% from 2.4% last year, while NPL cover remained ample at 179%. Solid asset quality allowed the Bank to trim down provisions further.
Metrobank is the country’s second largest private universal bank with consolidated assets of P2.6 trillion and total equity of P303.8 billion. The Bank’s balance sheet remains strong with capital adequacy ratio (CAR) of 18.5% and common equity Tier 1 (CET 1) of 17.6%, both substantially higher than the regulatory minimum. – PhilippinesToday.ph