Metropolitan Bank & Trust Co. (Metrobank) reported a 35.6% year-on-year increase, reaching P31.8 billion in net income for the nine months ending in September 2023. 

Metrobank attributes the income growth to its asset expansion, improved margins, and robust non-interest income, all contributing to the ongoing enhancement of asset quality. This translated into a 12.8% return on equity, surpassing the 10% figure from the same period in the previous year.

In the third quarter, the bank recorded a 38.7% surge in net earnings, reaching P10.9 billion compared to the corresponding period in the previous year.

Metrobank net income up 34% Q12023
Metrobank posts a growth of 31% net income in 1Q23

“The sustained growth of the bank underscores our strength and resilience, even in the face of unpredictable market conditions,” said Fabian S. Dee, president of Metrobank. “We are committed to maintaining our strong capital and liquidity positions while actively seeking out new market opportunities.”

Loans

The bank’s net interest income experienced a 24.4% increase, reaching P77.2 billion as of September compared to the previous year, primarily due to improved margins. Gross loans increased by 7.1% year-on-year, with consumer loans seeing a remarkable 16.5% growth. Net credit card receivables surged by 29.5%, and auto loans grew by 21.6%. Commercial loans increased by 4.8%, tracking the country’s modest economic growth.

Total deposits also posted growth, expanding by 14.5% to P2.3 trillion from the previous year, with low-cost Current and Savings Accounts (CASA) constituting 59.2% of the total.

Metrobank saw significant growth in trading and foreign exchange gains, with a 45.5% expansion to P3.6 billion, while fee income rose by 9.7% to P12.2 billion.

The bank managed to improve its cost-to-income ratio, achieving 51.5% compared to the previous year’s 54.5%. Notably, the robust 21.9% growth in revenues outpaced the 15.1% increase in operating expenses. Key drivers for cost growth included higher transaction-related taxes, technology-related costs, and capacity expansion.

Consolidated assets

Metrobank’s non-performing loans (NPLs) ratio continued to improve, declining to 1.7% from 2.1% in the previous year. Restructured loans accounted for only 0.4% of total loans. The NPL cover increased significantly, reaching a high of 187.1%, providing a substantial buffer against macroeconomic uncertainties that could pose risks to the loan portfolio.

Metrobank’s total consolidated assets approached P3 trillion and the total equity reached P342.2 billion.