TY family-led Metropolitan Bank & Trust Co. (Metrobank) on Tuesday said that net income for the first nine months of 2024 had grown by 12.4 percent to a record P35.7 billion, from P31.79 billion last year, following strong asset expansion, a recovery in noninterest income and improved asset quality.
“Our robust results reflect our strong drive to continue supporting the growing needs of our clients, all while preserving the health of our portfolio,” Metrobank President Fabian Dee said in a statement.
The private bank, the country’s second largest in terms of assets, said the nine-month result translated to a 12.9-percent return on equity, slightly higher than last year’s 12.8 percent.
The banking arm of listed conglomerate GT Capital Holdings Inc. said gross loans climbed 15.6 percent year on year, while commercial loans rose 16.6 percent as firms resumed capital spending and built up inventories amid an improving economic outlook.
“We look forward to the positive impact of recent regulatory measures on the banking industry alongside [an] improving economic outlook,” Dee said.
Consumer loans rose by 12.3 percent as net credit card receivables jumped 16.6 percent while auto loans expanded by 15.7 percent.
Total deposits as of end-September stood at P2.3 trillion from last year’s P2.4 trillion as time deposits declined to P860 billion from P925.9 billion. Low-cost current accounts savings accounts made up 62.3 percent of total deposits.
Net interest income climbed 11 percent to P85.7 billion while net interest margin stood at 3.90 percent.
Metrobank said that trading and foreign exchange gains reached P5.6 billion, up 56.4 percent from a year earlier, as it “took advantage of favorable market developments during the third quarter.”
Fee income edged up 2.7 percent to P12.5 billion while operating costs rose 11.2 percent to P57 billion, attributed to added spending on manpower, taxes and licenses, information technology and marketing costs.
The cost to income ratio as of end-September stood at 52.2 percent, resulting in roughly an 8.0-percent increase in pre-provision operating profit to P52.8 billion.
Metrobank’s nonperforming loans (NPL) ratio further eased to 1.59 percent from 1.74 percent, resulting in provision costs dropping 48.2 percent. The bank said it kept its NPL cover high at 161.9 percent to serve as a buffer “against any risks to the portfolio.”
As of Sept. 30, Metrobank’s total consolidated assets amounted to P3.34 trillion while its total equity reached P380.1 billion.
The bank reported a capital adequacy ratio of 17.1 percent and a common equity tier 1 ratio of 16.3 percent as of end-September, well above regulatory requirements, while its liquidity coverage ratio was said to be “healthy” at 258.4 percent.
Metrobank shares fell by 4.07 percent to P75.50 each on Tuesday and parent GT Capital’s stock price also fell, by 0.82 percent to P722, amid a 1.41-percent drop for the benchmark Philippine Stock Exchange index.
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