METROPOLITAN BANK & TRUST Co. (Metrobank) saw its net income increase by 13.97% to a record P48.14 billion last year as its assets continued to expand.
The bank’s attributable net profit was up from P42.24 billion in 2023, its financial statement disclosed to the stock exchange on Thursday showed.
This translated to a return on average equity of 12.97% and a return on average assets of 1.45%, up from 12.51% and 1.42% in 2023, respectively.
“The hard work that all Metrobankers put in growing our corporate, middle market, retail and wealth segments as well as our investments in technology and human resources and risk management initiatives continue to bear fruit,” Metrobank President Fabian S. Dee said. “This positive momentum and our strong balance sheet set us up very well to continuously meet the growing needs of our clients and to pursue our medium-term strategies.”
Metrobank’s net interest income rose by 8.71% to P114.12 billion last year from P104.97 billion in 2023. Interest income went up by 15.66% to P177.66 billion on higher interest earnings from loans and receivables, while interest expenses grew by 30.65% to P63.55 billion.
The bank’s increased interest earnings came on the back of a 17% expansion in its gross loans, it said.
“Commercial loans surged by 17.7% as corporates continued to increase capital spending. Consumer loans grew by 14.4% driven by an 18.6% rise in net credit card receivables and 18.2% growth in auto loans,” Metrobank said.
Even as its loan book expanded, the bank’s nonperforming loan (NPL) ratio improved to 1.43% in 2024 from 1.69% a year prior.
This allowed the bank to reduce its loan loss provisioning by 29.2% year on year. Still, its NPL cover remained high at 163.5%.
On the funding side, the bank’s total deposits rose by 8% year on year to P2.6 trillion, with low-cost current and savings accounts or CASA deposits making up 57.8% of the total.
This resulted in a loan-to-deposit ratio of 71.21% in 2024, up from 65.77% in 2023.
The bank’s net interest margin stood at 3.77% in 2024 versus 3.9% a year prior.
Meanwhile, Metrobank’s other operating income increased by 2.51% to P29.22 billion.
“Fee and trust income edged up to P18.1 billion supported by growth in consumer business. In addition, the bank booked a combined trading and foreign exchange gain of P5.6 billion in 2024, a 39% year-on-year improvement,” the bank said.
The bank’s operating expenses rose by 10.99% to P77.16 billion due to increased transaction-related taxes, manpower, technology, and marketing costs.
Metrobank’s assets expanded by 13.38% to P3.52 trillion at end-2024 from P3.1 trillion a year prior.
Total equity went up by 8.09% to P396.41 billion from P327.73 billion. Its capital adequacy ratio was at 16.68%, while common equity Tier 1 ratio was at 15.94%.
The bank’s liquidity ratio was at 46.09%, while its liquidity coverage ratio stood at 256.1%.
Metrobank’s shares went up by 45 centavos or 0.63% to close at P72 apiece on Thursday. — A.M.C. Sy
