Metrobank Q1 income grows 15% to P6.8B

Metropolitan Bank and Trust Co. posted a net income of P6.8 billion in the first quarter of 2019, up 15% from P5.9 billion year-on-year.

In a disclosure to the Philippine Stock Exchange on Tuesday, Metrobank said its solid performance for the quarter was driven by its double-digit growth in operating income on the back of consistent loan growth and margin expansion, higher fee-based income, and prudent operational expenditures.

“We are pleased with the favorable business results in the first three months. The year is starting on the right track, with performance metrics showing expansion in existing income streams, improving productivity, and most importantly, quality growth,” Metrobank president Fabian Dee said.

“We remain optimistic on the prospects of the economy, which should be supportive of the thriving banking industry.  Against this backdrop, we will continue to focus on key initiatives that will impact customer experience, efficiency, governance, and sustain profitability for the Bank,” Dee said.

Total deposits stood at P1.6 trillion supported by 8.5% growth in net loans and receivables to P1.4 trillion, which was led by the commercial loan segment comprised of top corporate accounts, middle market and small and medium enterprises.

Net interest income stood at P18.1 billion, up 12 %, accounting for 74 % of the bank’s total revenues of P24.6 billion.

Rounding out Metrobank's growth trajectory was its non-interest income, which rose by 8% to P6.5 billion.

This included a 9% increase in service fees and commissions to P3.1 billion, P1.5 billion in net trading and FX gains, and P1.6 billion in miscellaneous income.

Fee-related revenues as well as trading income continue to benefit from increased customer business in fixed income and foreign exchange, the bank said.

Operating expenses slowed down 10% at P13.5 billion.

Manpower-related costs accounted for P5.4 billion of the full amount, while the balance was spent on systems and process improvements, as well as continuous investments in information technology.

Metrobank’s consolidated assets reached P2.3 trillion and equity at P288.7 billion.

"Its capital ratios are comfortably above minimum requirements, with total capital adequacy ratio at 17.4% and Common Equity Tier 1 ratio at 15%," the bank said. —LDF, GMA News