The bank’s profit growth, fueled by robust asset expansion, a rebound in non-interest income, and better asset quality, resulted in a return on equity of 12.9 percent, up from 12.8 percent a year ago.
Jump in consumer, corporate loans
According to Metrobank, gross loans surged by 15.6 percent year-on-year, with commercial loans up 16.6 percent as businesses ramped up investments and inventories.
At the same time, consumer loans rose 12.3 percent, led by a 16.6-percent increase in credit card receivables and a 15.7-percent rise in auto loans.
This helped net interest income grow by 11 percent to P85.7 billion, yielding a net interest margin of 3.9 percent.
Metrobank also seized favorable market trends in the third quarter, reporting P5.6 billion in trading and foreign exchange gains, a 56.4-percent increase, while fee income grew to P12.5 billion.
Management’s view
"Our robust results reflect our strong drive to continue supporting the growing needs of
our clients, all while preserving the health of our portfolio," Metrobank president Fabian S. Dee said in a statement on Tuesday.
“We look forward to the positive impact of recent regulatory measures on the banking industry alongside improving economic outlook," he added.
Analysts’ view
Alfred Benjamin Garcia, research head at AP Securities, said the bank’s quarterly earnings were in line with estimates.
He also pointed out that Metrobank’s earnings accounted for 74.6 percent of their full year estimate.
“[Metrobank’s] conservative approach ensures good asset quality while allowing the bank to meet expectations,” he said, while noting that the lender has room to be more aggressive.
Costs
The bank’s non-performing loan ratio dropped to 1.59 percent, with provision costs decreasing 48.2 percent year-on-year.
Total deposits reached P2.3 trillion, with low-cost current and savings accounts (CASA) comprising 62.3 percent.
Operating costs increased by 11.2 percent to P57 billion, driven by workforce, tax, IT, and marketing investments, pushing the cost-to-income ratio to 52.2 percent.
2nd largest bank
Metrobank’s total assets stood at P3.34 trillion, securing its position as the country’s second-largest private universal bank.
The bank’s capital ratios remain robust, with a capital adequacy ratio of 17.1 percent and a common equity tier 1 ratio of 16.3 percent, both above regulatory minimums
