Metropolitan Bank & Trust Co. (Metrobank) posted a 14.5% rise in its net earnings for the first quarter of 2024 compared to the same period last year, reaching P12 billion. This achievement underscores the bank’s sustained growth trajectory amid evolving market dynamics.
Metrobank’s return on equity (ROE) also experienced an uptick, climbing to 13.7% from 13.1% a year ago. The bank attributes these positive financial indicators to robust lending activities, enhanced operational efficiencies, and optimizing capital utilization.
“As we remain focused on sustaining the Bank’s profitability, our strong commitment to our customers is at the center of our growth strategy,” said Fabian Dee, president, Metrobank. “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.”
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.
The bank’s net interest income saw a 15.4%, growth reaching P28.7 billion in the first quarter of the year. This surge was driven by sustained growth in interest-earning assets and an improved net interest margin of 4% from 3.9%.
Non-performing loans
Metrobank witnessed a significant expansion in its loan portfolio, with gross loans increasing by 12.1% year-on-year. Commercial loans surged by 11.2%, buoyed by increased corporate capital expenditures, while the consumer loans portfolio exhibited a robust growth of 15.3%, led by a 25.5% increase in gross credit card receivables and an 18.2% expansion in auto loans.
The bank’s asset quality remained stable, with non-performing loans (NPLs) ratio easing to 1.7%. This resilience enabled Metrobank to reduce provisions during the quarter, further reinforcing its financial position.
The successful issuance of a landmark $1 billion dual-tranche of 5-year and 10-year US denominated notes in March 2024 underscores Metrobank’s strong market reputation and strategic approach to funding key growth initiatives.
Meanwhile, the Bank’s total deposits increased by 4.9% from the same period last year to P2.4 trillion, with low-cost current and savings accounts (CASA) contributing 58.6% of the total.
The Bank’s operating expenses posted a moderate increase of 6.5% year-on-year, resulting in cost to income ratio improving to 51.3% from 51.6% last year.