Metrobank 3Q Net Income Hits PhP4B
Makati—(PHStocks)—Metropolitan Bank & Trust Co. (PSE: MBT) reported unaudited consolidated net income of PhP13.1 billion for the first nine months of 2014. The Bank booked PhP4 billion net income in the third quarter, 57% higher compared with the same period last year.
Year-to-date net interest income increased 23% to PhP34 billion, and contributed 64% to the PhP53 billion total operating income. This was driven by the better-than-expected growth in loans and deposits, and relatively healthy spreads. For the period, net interest margin (NIM) was maintained at the 3.8% level, one of the highest in the industry.
Metrobank President Fabian Dee commented: “The robust core income growth reflects positively on our strategy. Our thrust is to maximize returns from traditional revenue sources while prudently managing balance sheet growth.”
At the end of September 2014, Metrobank’s loans and receivables portfolio expanded by 21% year-on-year to PhP697.3 billion. Demand was particularly strong from commercial clients, including middle market and SMEs. On the other hand, reflective of the Bank’s push for low cost funding, total deposits sustained its high growth rate of 23% to reach PhP1.1 trillion. The Group opened 31 local branches this year to bring the total to 887, still the largest in the industry.
President Dee elaborated further: “We remain optimistic about the prospects of the domestic economy. We are continuously building our capabilities, and we will accelerate our expansion into new growth areas, increase sales coverage and strengthen client relationships to ensure sustainable profitability and capital efficiency.”
Meanwhile, the Bank reported P19.0 billion in non-interest income consisting of PhP6.6 billion in service charges and commissions, PhP1.5 billion from trading and forex gains, and miscellaneous income of PhP10.9 billion. This included proceeds from property divestments and sale of non-core assets in the first and third quarter, respectively, which were done in preparation for Basel III.
Operating expense was kept at a reasonable level with recurring expenses up 7% for the period. Provisions for credit and impairment losses were lower by 17% year-on-year at PhP3.3 billion.
Asset quality continues to improve as non-performing loans (NPL) ratio dropped further to 1.1% from 1.4% as of the same period last year. NPL coverage increased to 169% from 140% previously.
Metrobank ended the period with consolidated assets reaching PhP1.5 trillion and total equity of PhP142.2 billion. Basel III capital adequacy ratio (CAR) remained well above the regulatory requirements at 16.2% with common equity tier 1 (CET1) at 12.1%.