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Friday, March 29, 2024

Metrobank’s income jumps 48% to P32.8b

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Metropolitan Bank & Trust Co., the second-largest lender in the country, said Thursday net income jumped 48 percent in 2022 to P32.8 billion from a year ago, driven by the sustained strength of core businesses.

The bank said in a statement fourth-quarter earnings also climbed 55 percent year-on-year to P9.3 billion.

It said better corporate and consumer lending businesses, healthy fee income and subdued operating expenses marked the 2022 performance.

Net interest income increased 14 percent year-on-year on higher loan demand and better net interest margin of 3.6 percent. Gross loans expanded 14 percent, supported by a 15-percent growth in corporate and commercial loans as businesses started to build inventories and resumed investment spending.

Net credit card loans went up 29 percent, leading the recovery in consumer lending.

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Deposits grew 15 percent from the previous year to P2.2 trillion, with low-cost current and savings accounts stable at P1.5 trillion.

“With our strong balance sheet and highly capable team of Metrobankers, we stand ready to continue to be the trusted partner of all our stakeholders for the long term,” Metrobank president Fabian Dee said in a statement.

The 11-percent improvement in fees and other income to P23.5 billion supported the bank’s modest growth in non-interest income.

Operating expense growth was manageable at 3 percent to P61 billion, bringing down the cost-to-income ratio to 54 percent from 59 percent in 2021. This helped drive the 24-percent increase in pre-provision operating profit to P52 billion in 2022.

Non-performing loan ratio eased to 1.9 percent from 2.2 percent in 2021, above the industry’s 3.3 percent. Its NPL cover remained substantial at 172.4 percent, reflecting the bank’s strong ability to cover any potential risks to portfolio health.

Metrobank ended 2022 with consolidated assets of P2.8 trillion, maintaining its status as the country’s second-largest private universal bank.

Total equity reached P318.5 billion. Capital ratios remained one of the highest in the industry, with capital adequacy ratio of 17.7 percent and common equity tier 1 ratio of 16.8 percent, above the minimum regulatory requirements.

Metrobank’s board of directors approved total cash dividend of P3 per share for the year. The regular dividend of P1.60 per share will be paid out on a semi-annual basis at P0.80 per share. It also declared a special cash dividend of P1.40 per share.

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