Metropolitan Bank & Trust Company (Metrobank) reported unaudited consolidated net income of P5.7 billion for the first quarter 2014. The key performance driver was the double-digit increase in core revenues which came at the back of sustained volume growth in loans and deposits.
Total operating income for the period hit P20.1 billion. This was comprised of P11.1 billion in net interest income, and P9.0 billion in non-interest income.
Metrobank’s growth momentum continued to accelerate as total deposits increased 50% to settle at P1.0 trillion by quarter-end. This fueled the 19% expansion in net loans and receivables to P623.5 billion, with the commercial loan portfolio leading the growth at 21% year-on- year. Net interest margin held steady at 3.9%.
Non-interest income included P2.1 billion in fee-based income, and P0.9 billion in trading and FX gains. Income from trust operations, on the other hand, improved by 37% to reach P0.3 billion. Miscellaneous income was reported at P5.7 billion, predominantly coming from the gains from a property sale and divestments of non-core assets. The asset disposals are consistent with Metrobank’s capital planning initiatives under the new Basel III regime.
Meanwhile, total operating expenses for the period was reported at P10.3 billion, and provisions for credit and impairment losses amounted to P1.2 billion.
Asset quality remains well under control as non-performing loans (NPL) ratio further improved to 1.4% from 1.8% as of the same period last year, with NPL coverage now at 155% from 124% previously.
Metrobank continued to pursue its branch expansion strategy to improve coverage and customer accessibility. The Bank opened five branches and 15 ATMs in the first quarter, bringing the consolidated total to 861 and 1,951, respectively.
Metrobank was recently upgraded by Fitch Ratings to investment grade status. The Bank’s Long-Term Issuer Default Rating was upgraded to BBB- from BB+, with a Stable outlook. This rating puts Metrobank at par with the Republic of the Philippines. This is the second investment grade rating received by Metrobank; the first upgrade was issued by Moody’s in October 2013.
Metrobank ended the first quarter with consolidated assets reaching P1.4 trillion, and equity at P136.5 billion. Total capital adequacy ratio (CAR) on a Basel III basis remained well above the regulatory limit at 16.0%.