Metrobank posts P4.4 billion net income in 2008

MANILA, Philippines - The country's largest lender Metropolitan Bank & Trust Co. marked down its risky assets in its porfolio last year to post a P4.4-billion net profit attributable to common shareholders, bank president Arthur Ty said in a statement. The bank did not indicate if the figure was lower than 2007. However, the amount could be 37.5 percent lower than P7.04 billion based on the 2007 audited financial statements. Metrobank said consolidated net loans and receivables rose 17.5 percent to P358.2 billion as bad loan ratio fell to 4.5 percent from 5.3 percent in 2007, the lowest since the Asian crisis. Fee-based income consisting of service charges, fees and commissions saw a 23.2 percent growth to P6.8 billion while operating expenses dipped 8.4 percent to P27.4 billion. “Our core business performed well despite the difficult conditions. We marked down all risky assets in our portfolio in 2008 and were still able to reflect a reasonable income. We feel that last year’s performance was a result of our strategy of prudent growth and better risk management," Mr. Ty said. Metrobank said operating income, including ex-provisions and securities mark downs, rose 2.7 percent to P37.4 billion. Net interest income grew by 7.5 percent to P23.1 billion on higher low-cost deposits while total deposits grew 10.5 percent to P585.3 billion.. Consolidated equity position was recorded at P65.1 billion while consolidated risk-adjusted capital adequacy ratio stood at 13.4 percent, with Tier 1 ratio hitting 10 percent. At the end of 2008, Metrobank said, the bank has fully marked down all financial instruments that were adversely affected by the global financial crisis. While the regulators allowed accounting relief via the reclassification of investment securities, Metrobank said it had opted not to avail of this regulatory relief and followed the stricter International Accounting Standards instead. " We are moving into 2009 with a healthy balance sheet and strong capital position, focused on responsible growth in the right segments," he added. -GMANews.TV