Metropolitan Bank & Trust Co.’s (Metrobank) recorded a net income increase of 12.4% for the first nine months of 2024, totaling P35.7 billion, driven by strong loan growth and improvements in asset quality. This income boost resulted in a return on equity of 12.9%, just above last year’s 12.8%.
“Our robust results reflect our strong drive to continue supporting the growing needs of our clients, all while preserving the health of our portfolio,” Fabian Dee, president of Metrobank, said in a statement.
Dee also said that the bank remains optimistic about the impact of regulatory changes on the banking sector amid an improving economy.
Lending
Commercial and consumer lending played key roles in Metrobank’s performance, with gross loans up 15.6% year-on-year. Commercial loans saw a 16.6% increase, fueled by businesses ramping up investments and inventory. Consumer loans followed suit, growing by 12.3%, as net credit card receivables rose 16.6%, and auto loans grew by 15.7%.
Total deposits reached P2.3 trillion, with low-cost current and savings accounts (CASA) making up 62.3% of this sum. Net interest income climbed by 11% to P85.7 billion, reflecting Metrobank’s steady margin of 3.90%.
Market conditions also aided Metrobank’s earnings, with trading and foreign exchange gains of P5.6 billion, marking a 56.4% increase from last year. Fee income also saw gains, reaching P12.5 billion.
Investments
Operating costs rose 11.2% to P57 billion due to expenses tied to personnel, taxes, IT, and marketing, reflecting Metrobank’s investments in future growth. Despite these costs, the bank’s pre-provision operating profit grew by 7.9% to P52.8 billion, showing positive results even with added expenses.
Asset quality improved as Metrobank’s non-performing loan (NPL) ratio declined to 1.59%. Provision costs were down by 48.2%, yet the bank maintained a high NPL coverage ratio of 161.9%, providing security against potential loan risks.
As of September, Metrobank’s total assets stood at P3.34 trillion, with equity at P380.1 billion, securing its position as the Philippines’ second-largest private universal bank. The bank’s capital ratios remain among the highest in the industry, with a Capital Adequacy Ratio of 17.1% and a Common Equity Tier 1 (CET1) ratio of 16.3%, both well above the Bangko Sentral ng Pilipinas’ regulatory requirements. The bank’s liquidity coverage ratio also remains healthy at 258.4%.