Metropolitan Bank & Trust Company (Metrobank, PSE: MBT) has reported consolidated net income of PhP8.4 billion for the full year 2010, up 39% from the previous year. This pushed return on average equity to 10.3%, an improvement from 8.6% in 2009.
The increase was driven by the healthy 10% growth in total revenues to PhP48.1 billion, up from PhP43.7 billion in the previous year. This was on the back of a 28% hike in non-interest income to PhP21.7 billion, while net interest income stood at PhP26.4 billion. Service charges, fees and commissions were relatively healthy at PhP6.9 billion, while income from trading and foreign exchange grew 54% to PhP9 billion. Operating expense, on the other hand, was maintained at 8% year-on-year (YoY) to PhP27.8 billion. In total, income before provisions reached PhP20.3 billion, up 14% from the previous year.
Metrobank remained focused on enhancing its asset quality and strengthening its balance sheet. Gross nonperforming loans (NPL) were reduced by 12%, settling at PhP11 billion by the end of 2010. Subsequently, the NPL ratio further declined to 2.9% by year-end. The bank set aside provisions for credit and impairment losses of PhP7.3 billion for the year, driving the NPL coverage ratio higher to 92.3%.
As of December 31, 2010, Metrobank posted consolidated assets of PhP887.3 billion, up from PhP854.3 billion in 2009. The deposit base grew by 6% YoY to PhP651.3 billion, supported by the continued build up of low cost deposits. Net loans and receivables went up 8% to PhP392.7 billion, in line with the overall growth of the economy particularly the sustained performance of the consumer section.
Metrobank’s total equity reached PhP87.6 billion, up 16% YoY. By the end of last year, total capital adequacy ratio further improved to 16.4% from 14.3% in 2009, well above the 10% regulatory minimum. The tier 1 capital ratio likewise rose to 12%, from 10% in the previous year.