Metrobank profit jumps 36.8% to P6B last year

03/12/2010

Metropolitan Bank and Trust Co.’s (Metrobank) consolidated net income for last year reached P6 billion, representing a strong 36.8 percent increase over the P4.4 billion reported in 2008.

Net income for the fourth quarter surged by 104.8 percent to P1.4 billion, compared to P702 million a year ago.

“The full year results reflect our continued earnings strength and more efficient operations. Our strategies continue to prove effective. We were able to take advantage of the recovery from the financial turmoil of the previous year, and we are proud to show a consistent performance throughout 2009,” Metrobank president Arthur Ty said.

For last year, total revenues climbed 22.9 percent to P43.7 billion, while operating expense growth slowed to 6.8 percent at P25.8 billion. With revenue growth significantly surpassing growth in costs, Metrobank’s efficiency ratio further improved to 60.4 percent from 70.0 percent in 2008.

Net interest income grew 15.6 percent to P26.7 billion driven by sustained margins and improved funding mix. Non-interest income expanded by 36.2 percent to P17.0 billion supported by fee-based income and financial markets sales and trading. As a result, income before provisions climbed 57.1 percent to P17.8 billion, from P11.4 billion in 2008.

Metrobank’s focus on improving asset quality continues to show positive results. Gross non-performing loans (NPLs) has been steadily declining since the beginning of 2009, with an absolute reduction in NPLs of P3.2 billion or 20.6 percent from the previous year’s level.

Consequently, the NPL ratio dropped to 3.5 percent at year-end, from 4.5 percent in 2008. Metrobank set aside provisions for impairment and credit losses of P8.8 billion, raising loan loss cover to 75.5 percent from 62.6 percent in 2008.

“We focused on providing excellent banking value to customers by enhancing product offerings and improving customer satisfaction. We strengthened our capital and improved our banking platform to give our customers a safer bank that can deliver the products they need,” added Ty.

As of Dec. 31, 2009, Metrobank had P854.3 billion in consolidated assets. It maintained its position as the bank with the highest capital in the banking industry at P75.2 billion. Metrobank’s capital adequacy ratio stood strong at 14.3 percent with Tier 1 ratio at 10 percent.

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