METROPOLITAN Bank and Trust Co., the country’s second-largest lender, said net income in 2014 declined 11 percent to P20.1 billion from P22.5 billion in 2013 on lower trading gains.
Metrobank said in a disclosure to the stock exchange Monday core businesses remained strong, especially loans and deposits.
“The strong performance in the bank’s core business was driven by robust growth in loans and deposits, and relatively stable spreads amidst the low interest rate environment and tough competition,” the bank said.
“Metrobank’s recent investments in its branch network, coverage expansion, and internal system enhancements were catalysts for its sustained balance sheet growth,” the bank added.
Deposits increased 17 percent to P1.2 trillion, providing the bank with stable low-cost funding to fuel its healthy loan expansion.
“Building on the momentum from previous quarters, loans and receivables further accelerated to close the year at P759.5 billion, or 24-percent growth with the commercial segment posting the strongest year-on-year increase,” it said.
Total resources hit a new high of P1.6 trillion, up 16 percent from last year’s P1.4 trillion. Net interest income increased 20 percent to P45.8 billion and contributed 61 percent of the bank’s total operating profit from 48 percent in 2013.
Metrobank reported a non-interest income of P29.6 billion, consisting of P8.9 billion in service charges and commissions, P3.2 billion from trading
and forex gains, and miscellaneous income of P17.5 billion. Miscellaneous income included the sale of non-core assets as well as foreclosed properties.
The bank kept Operating expenses at a reasonable level with recurring cost growth under 6 percent. Asset quality continues to improve with non-performing loans ratio
dropping to a low of 1.0 percent, while NPL coverage increased to 165 percent.
The bank reported provisions for credit and impairment losses of P4.8 billion.
Metrobank in 2014 opened 64 branches to increase its domestic presence to 920 branches, still the largest in the industry. More than half of the network is located outside Metro Manila, placing the bank in a position to better service the demands of the regional growth areas of the economy. The bank has 2,100 automated teller machines nationwide.