Commercial loans boost Metrobank's profits to P6.8 billion in Q1 2019
MANILA, Philippines – Metropolitan Bank and Trust Company (Metrobank) reported a net income of P6.8 billion for the 1st quarter of 2019, 15% higher than the P5.9 billion recorded in the same period last year.
The country's 2nd largest bank in terms of assets said its strong performance from January to March was driven by double-digit growth in operating income on the back of consistent loan growth and margin expansion, higher fee-based income, and prudent operational spending. (READ: How persistence got Metrobank its own banking license)
Total deposits for the quarter stood at P1.6 trillion, while net loans and receivables grew by 8.5% to P1.4 trillion. Commercial loans led the growth, comprising of top corporate accounts, middle market, and small and medium enterprises.
Net interest income came in at P18.1 billion, 12% higher year-on-year and accounting for 74% of the bank's total revenues of P24.6 billion.
Meanwhile, non-interest income rose by 8% to P6.5 billion.
The bank's operating expenses were down by 10%, totaling P13.5 billion. Consolidated assets stood at P2.3 trillion and equity at P288.7 billion.
Metrobank president Fabian Dee also attributed the good figures to the Philippines' good economy.
"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," said Dee.
Metrobank is among the 5 banks which had a loan exposure after Subic-based shipbuilder Hanjin defaulted on its loans. The central bank, however, maintained that the default would have minimal impact on the overall banking industry.
Metrobank is estimated to have the 3rd biggest exposure at $70 million. The bank said the amount is "relatively low" in relation to its total loan portfolio. – Rappler.com