Metropolitan Bank & Trust Co. (Metrobank) announced that its net profit rose 46% to 16.1 billion pesos in the first nine months of 2021.
In a statement, Metrobank said profits jumped 131% to 4.4 billion pesos in the third quarter of 2021, with proactive management of NPLs resulting in lower provisions. Healthy commissions and other income and controlled growth in operating expenses contributed to the positive earnings performance.
“Our strategy of building a stronger balance sheet has given us the ability to withstand protracted risks and also enabled us to implement strategies to optimize our operational performance over the medium term,” said Fabian S. Dee, President by Metrobank.
“We will continue to help with the economic recovery as we see a gradual increase in lending activity as businesses are better able to adapt to the pandemic,” Dee said.
Total operating profit reached 75.9 billion pesos in the first nine months. Net interest income continues to improve from the prior quarter as the net interest margin started to stabilize at 3.4%. The sequential quarterly recovery in business and credit card loans was also strong.
Funding costs, he said, were also stable, supported by a 13% growth in low-cost deposits to current and savings accounts (CASA) as customers continued to park their excess cash. from Metrobank. The CASA ratio remained high at 74.9%.
Commissions and other non-interest income increased 20% to 15.2 billion pesos in the first nine months, reflecting higher transaction volumes and cross-selling initiatives. On the other hand, operating costs increased slightly by 1% to 44.4 billion pesos.
These favorable trends mitigated the impact of weak trading revenues. Provision charges fell 72% to 10.0 billion pesos as the health of Metrobank’s portfolio improved, with the NPL ratio falling further to 2.1%, well below 4.5% the sector in September 2021. Similarly, the ratio of restructured loans at 0.8% is much lower than that of the sector. ratio of 3.1 percent. As such, NPL coverage increased to 191 percent.
Metrobank is the country’s second-largest private universal bank with consolidated assets of 2.4 trillion pesos at the end of September 2021. Total equity reached 317.1 billion pesos, leading to a capital adequacy ratio (CAR) high of 20.7% and a senior capital ratio. (CET1) of 19.8%.
The Bank’s formidable balance sheet and the exceptional quality of its assets in a challenging environment have been recognized by The Asian Banker and Asiamoney. Metrobank was hailed as the strongest bank in the Philippines by The Asian Banker and was recognized as the best national bank in the Philippines at the Asiamoney Bank Awards 2021.
“To be recognized for our strength and resilience amid the global economic uncertainty caused by the pandemic is a great honor for all Metrobankers,” Dee concluded.
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