Friday , 29 March 2024
The Metropolitan Bank and Trust Co.’s (Metrobank) main office on Sen. Gil Puyat St. in Makati City. TMM FILE PHOTO

Metrobank reports record-setting results

Major lender Metropolitan Bank and Trust Co. (Metrobank) reported a consolidated net income of P18.1 billion in 2016 Profit for the fourth quarter grew 3 percent to P5.5 billion from a year ago, the bank reported. 

All-time high levels in 2016 included Metrobank’s total resources that hit P1.9 trillion, total deposits at P1.4 trillion, and total loans at P1.1 trillion.

The Bank’s current and savings account (CASA) deposits increased 21 percent to P846 billion with a CASA ratio of 61 percent of the total P1.4 trillion deposit base from 56 percent in 2015.

The bank’s CASA performance provided the liquidity to support lending growth, it added.

Net loans and receivables increased by 20 percent and breached previous levels to reach P1.1 trillion in total loan portfolio in 2016 and accounted for 57 percent of total assets.

The commercial segment led the growth with 22 percent growth year-on-year. The bank attributed this to meeting the long-term capital expenditure (capex) requirements of corporate clients and the working capital needs of the middle market and SME customers.

The consumer segment improved 16 percent mainly from auto loans.

“Despite intense competitive pressures, the strong CASA generation and loan growth expansion allowed the bank to keep net interest margins steady for the year at 3.54 percent. This continues to be the highest among peers,” a Metrobank statement said.

Total non-interest income increased 37 percent year-on-year to P25.2 billion, with P11.6 billion from service charges, fees and commissions and trust operations, P8.1 billion in net trading and foreign currency gains, and P5.5 billion in other income.

Overall, the bank’s total revenues for 2016 increased 16% year-on-year to P78.2 billion.

Non-performing loans (NPL) ratio was at 0.94 percent by year-end, with NPL coverage at 113 percent.

Operating expenses grew 11 percent to P44.2 billion mainly spent for manpower-related costs in-line with plans to hire client-facing personnel to improve customer coverage. Other cost items were kept at a more manageable single-digit growth, notwithstanding the continued investment in technology, marketing, and customer acquisition initiatives.RIZA LOZADA 

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