Makati—(PHStocks)—Metropolitan Bank & Trust Company (Metrobank, PSE: MBT) reported consolidated net income of PhP15.4 billion for full year 2012, or 40% higher than the PhP11 billion earned in the same period last year. As a result, return on average equity improved to 13.4% from 11.2% in 2011.
Consolidated resources breached the PhP1-trillion milestone to end the year at PhP1.04 trillion, a 9% increase from the previous year’s PhP958.4 billion. The growth was attributed mainly to the 8% increase in deposits to PhP738.7 billion. This fuelled the 15% year-on-year expansion in net loans and receivables to PhP525.7 billion, with the consumer and commercial middle market leading the growth.
Total operating income increased by 16% to PhP58.7 billion, on the back of a 5% growth in net interest income to PhP30.8 billion and a 33% hike in non-interest income. Despite intensified market competition and declining interest rates, the Bank’s 2012 net interest margin improved to 3.6% from last year’s 3.5%. This was supported by a more favorable deposit mix as total low cost deposits accounted for 56% of total deposits compared to just 53% last year. Meanwhile, the increase in non-interest income was driven by steady growth in fee-based revenues, earnings from treasury and investment activities, and miscellaneous income.
The Bank continued to report efficiency gains, as the cost-to-income ratio improved to 59.7% from 62.6% previously. Metrobank’s pre-provision operating profit rose 28% year-on-year to PhP25.4 billion.
Asset quality remains well under control as the non-performing loans (NPL) ratio further improved to 1.8% from 2.2% last year. Metrobank set aside provision for credit and impairment losses amounting to PhP4.5 billion, raising NPL coverage to 117% from 100% previously.
At the end of 2012, Metrobank reported total equity of PhP120 billion and total capital adequacy ratio (CAR) of 16.3% with Tier 1 CAR at 13.7%.