Interest-earning assets and a robust loan portfolio pushed Metropolitan Bank & Trust Co.'s (Metrobank) first-quarter net income to P12 billion, a 14.5% increase from the same period in 2023.
In addition, Metrobank's total consolidated assets expanded by 10.7% to P3.2 trillion, the second-highest asset base among the country's private universal banks.
"As we remain focused on sustaining the bank's profitability, our strong commitment to our customers is at the center of our growth strategy. We will consistently offer tailored financial solutions that directly address the needs and goals of those we serve to help them build a more prosperous future," said Metrobank president Fabian Dee.
In a statement, the bank said its return on equity (ROE) also rose by 13.7% compared to the 13.1% recorded a year ago. The bank's improving profitability was driven by consistent growth of its lending portfolio, better operational efficiencies, stable asset quality, and continued execution of strategies to optimize the use of capital. The bank's net interest income grew by 15.4% to P28.7 billion in the first three months of the previous year, propelled by sustained growth in interest-earning assets and a higher net interest margin of 4.0% from 3.9%. This was supported by the continued expansion of its gross loans, which rose by 12.1% year-on-year. Commercial loans jumped by 11.2%, partly driven by the rising capital expenditures of corporates. The bank's consumer loans portfolio remained robust, recording a 15.3% growth, led by a 25.5% increase in gross credit card receivables and an 18.2% expansion in auto loans. Meanwhile, the bank's total deposits
increased 4.9% from last year to P2.4 trillion, with low-cost current and savings accounts (CASA) contributing 58.6%. The bank's operating expenses increased moderately by 6.5% year-on-year, improving the cost-to-income ratio to 51.3% from 51.6% last year. Meanwhile, the non-performing loans (NPLs) ratio eased to 1.7% from 1.8% in the first quarter of 2023, well below the banking system's reported 3.5% NPL ratio in February this year. The stable asset quality enabled the bank to trim provisions to PHP562 million during the quarter from P2.4 billion a year ago. The Bank's NPL cover remains robust at 174.1%, a substantial buffer against any potential risks to the loan portfolio. The bank's total equity stood at PHP345.7 billion. Capital ratios remain amongst the highest in the industry, with a capital adequacy ratio of 16.8% and a Common Equity Tier 1 (CET1) ratio of 16.0%, all well above the minimum regulatory requirements.
Metrobank successfully concluded its offering of a landmark USD billion dual-tranche of 5-year and 10-year U.S.-denominated notes in March 2024. The bond issue is the longest senior-dated note by a private domestic bank in the Philippines and the largest non-sovereign note issuance of $1 billion. The proceeds will fund the bank's key growth initiatives.
Metrobank's notable performance in wealth management was recently recognized at the 2024 Euromoney Global Private Banking Awards, which named the Bank the Best Bank for Ultra-High-Net-worth. The Asian Banker also noted Metrobank as the Most Recommended Retail Bank in the Philippines, based on the results of The Asian Banker's Annual BankQuality Consumer Survey in January 2024.
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