Metrobank says Q1 net income grew nearly threefold to P11.4B

Metropolitan Bank & Trust Co. grew its first quarter net income by nearly threefold to P11.4 billion on the back of steady growth in core revenues, robust expansion in treasury and investment activities and increase in miscellaneous income.   Total operating income climbed by P9.8 billion to hit P26.9 billion, largely driven by a 103 percent rise in non-interest income to P18.7 billion, Metrobank said in a disclosure to the Philippine Stock Exchange on Thursday.   Net interest income went up by 5 percent to P8.2 billion.   The Ty-led bank sustained a loan growth of 15 percent to P523.3 billion with consumer and middle market segments fueling the demand. Deposit growth continued at 11 percent owing to the strong take up in the low-cost deposits, which now account for 62 percent of the total.   Despite intensified competition and declining interest rates, net interest margin improved to 4 percent as against 3.7 percent in the same period last year. This was attributed to the more favorable deposit mix and sustained asset growth in the higher yielding segments.   Higher non-interest income was driven by an 8 percent increase in service charges, fees and commission to P2.1 billion, strong earnings from treasury and investment activities which hit P11.3 billion and a miscellaneous income of P5.2 billion.   Miscellaneous income includes the gain on sale of the remaining 15 percent stake in Toyota Motors Philippines Corp. last January.   Metrobank continued to expanded its sales coverage strategy, opening three branches and 40 ATMs during the period, bringing the consolidated network to 831 branches with an ATM network of 1,800.   The bank set aside provision for credit and impairment losses amounting to P1.1 billion on a consolidated basis, raising NPL coverage to 124 percent from 110 percent previously.   Metrobank ended the quarter with P1 trillion in consolidated assets and P133.2 billion in total equity.  At 17.3 percent, total capital adequacy ratio (CAR) remained well above the 10 percent regulatory limit. Tier 1 CAR was at 14.8 percent. — VS, GMA News