Metrobank ended 2015 with P18.6-billion profit

By Riza Lozada

The Metropolitan Bank and Trust Co. (Metrobank), the country’s biggest lender, reported a 20-percent increase in its core earnings, ending 2015 with a consolidated net income of P18.6 billion. The bank’s total resources stood at P1.8 trillion.

In a disclosure, Metrobank said net interest income reached P49 billion, comprising 70 percent of total operating income. Net interest margin was achieved at 3.54 percent, which is the highest among its peer group.

Non-interest income reached P18.4 billion, of which a hefty contribution earned from P9.8 billion in service charges, fees and commissions, which registered a 10-percent improvement from last year.

Non-interest income also generated from P1.8 billion in trading and FX gains, and P6.8 billion in other income. Operating expenses was maintained at single-digit cost growth.

The bank grew its current and savings accounts (Casa) by 18 percent, more than double its system deposit growth and which continued to provide the bank with stable low-cost funding to fuel its sustained loan expansion.

Total deposits was recorded at P1.3 trillion, with a Casa ratio of 56 percent. Loan portfolio stood at P887.2 billion, which outpaced the industry’s 13-percent year-on-year loan expansion.

With the successful launch of a P32-billion stock-rights offer last April, Metrobank’s Basel 3 total capital adequacy ratio (CAR) remained well above the regulatory limit at 17.75 percent, with Common Equity Tier 1 (CET1) at 14.25 percent.

Its non-performing loans (NPL) ratio was under 1 percent. Provisions for credit and impairment losses was at P2.1 billion.

Metrobank continued to pursue its coverage expansion strategy to improve customer accessibility by opening 23 branches and installing 126 new automated teller machines (ATMs). This brings the number of Metrobank branches to 943 and ATMs to 2,226 nationwide.

The bank also has 32 foreign branches, subsidiaries and representative offices.

“We expected 2015 to be another challenging year for the banking industry. Both loans and deposits growth showed a slowdown, while market conditions limited trading opportunities. Under this scenario, our priority was to continue supporting our clients in their commercial and retail needs, as well as generating low cost deposits and fee-based income” Metrobank President Fabian Dee said.

For its overall performance, Metrobank was recognized as the strongest bank in the Philippines by The Asian Banker. Metrobank ranked ninth overall in Asia, making it the first time a Philippine bank reached the top 10.

“Our investments in improving client coverage, automation and system enhancements, coupled with better internal synergy, helped mitigate industry challenges,” Dee said.

“We also increased capital early last year to ensure we had the financial strength to take on growth opportunities and to help us withstand potential external and market shocks,” he added.