METROPOLITAN Bank & Trust Co. (Metrobank) announced on Friday that its attributable net income for the third quarter (Q3) rose by 38.7% to P10.89 billion from P7.85 billion in the same period the previous year.
“The sustained growth of the bank shows that we remain strong and resilient despite the unpredictable market conditions. We will continue to work on keeping our sound capital and liquidity positions as we look for more market opportunities,” Metrobank President Fabian S. Dee said in a statement.
The bank’s performance in the third quarter raised its attributable net income for the nine-month period to P31.8 billion, a 35.6% increase from P23.4 billion a year earlier.
Metrobank said this was due to its “asset expansion, improving margins, and healthy non-interest income growth as asset quality continued to improve.”
This translated to a return on average equity of 12.8%, up from the 10% recorded in the same period a year prior.
It also led to a return on average assets of 1.46%, up from 1.19% a year ago.
Meanwhile, its net interest income went up to P26.7 billion in the July to September period from P22.3 billion year on year.
The bank’s net interest margin stood at 3.93% at end-September, up from 3.52% a year prior.
Meanwhile, other income jumped to P8.02 billion in the third quarter from P4.9 billion a year ago.
As a result, the bank’s cost-to-income ratio stood at 51.5% from 54.5% a year ago.
“The robust 21.9% growth in revenues outstripped the 15.1% increase in operating expenses. Higher transaction-related taxes, technology related costs and capacity expansion were the key drivers of cost growth,” Metrobank added.
Metrobank’s total loans grew by 7.1%, driven by the 16.5% rise in consumer loans and 4.8% increase in commercial loans.
Net credit card receivables jumped by 29.5% and auto loans rose by 21.6%.
Its nonperforming loan (NPL) ratio improved to 1.7% from 2.1% a year ago, as the bank “continued to practice prudence to maintain the quality of its portfolio.”
On the funding side, deposits expanded by 14.5% year on year to P2.3 trillion, with low-cost current and savings accounts making up 59.2% of the total.
Metrobank’s total consolidated assets stood at P3 trillion.
Total equity reached P342.2 billion.
Its capital adequacy ratio stood at 18.42%, up from 17.2% a year prior, while its common equity Tier 1 ratio was at 17.59%, also higher than the 16.34% seen last year.
Meanwhile, its liquidity coverage ratio stood at 48.89%.
Metrobank shares closed unchanged at P52 apiece on Friday. — Luisa Maria Jacinta C. Jocson