Metrobank (Metropolitan Bank & Trust Co.) posted a 31.3% growth in net income in the first quarter of 2023. The bank attributed the P10.5 billion growth to higher margins and expansion of the lending portfolio.
“This translated to a 13.1% return on equity, higher than the 10.3% recorded in the same period last year,” Metrobank said in a statement Friday.
Metrobank’s net interest income soared to P24.9 billion or a 28.8% jump from the previous year primarily due to higher loans and a 54-basis point hike in net interest margin to 3.9%. Its gross loans also grew by 12.5% year-on-year, driven by a 12.7% rise in commercial loans and 11.8% expansion in consumer loans.
The bank’s consumer loans business was mainly driven by a 30.0% growth in net credit card receivables and a 10.7% rise in auto loans.
Metrobank’s non-performing loans (NPLs) ratio further eased to 1.8% from 2.2% in the same period last year. NPL cover further improved to 189.3%, solidifying the Bank’s buffer against any risks to the portfolio.
Its total deposits rose to P2.3 trillion or 10.8% compared to a year ago with low-cost Current and Savings Accounts (CASA) accounting for 62.1%.
Trading and FX gains stood at P2.1 billion, while fee income rose by 13.4% to P4.1 billion.
Metrobank’s OPEX jumped by 13.5% to P16.9 billion on the back of higher taxes, technology spending, and transaction-related expenses.
“The strong revenue growth offset the impact of rising expenses, thus improving the cost-to-income ratio to 51.6% from 54.1% from the year before,” the bank said. “As a result, pre-provision operating profit increased by 26.4% to PHP 16.1 billion.”
Metrobank’s total consolidated assets stood at P2.9 trillion while total equity stood at P320.0 billion.
The Bank’s capital ratios remain to be one of the highest in the industry, with capital adequacy ratio at 17.6% and Common Equity Tier 1 (CET1) ratio at 16.8%, all well-above the BSP’s minimum regulatory requirements. Also, Metrobank’s Liquidity Coverage Ratio (LCR) is substantial at 237.8%.