MANILA, Philippines - Metropolitan Bank & Trust Co. (Metrobank) reported a consolidated net income of P18.1 billion in 2016. Net income in the fourth quarter alone was at P5.5 billion, three percent higher than the comparative period in the previous year.
In 2016, Metrobank achieved all-time high levels in the bank’s 54-year history. Total resources peaked at P1 .9 trillion, total deposits reached P1.4 trillion, and total loans hit P1.1 trillion.
Throughout this growth cycle, Metrobank maintained its strong balance sheet profile in terms of liquidity, asset quality and capital adequacy. The Asian Banker has again named Metrobank as the strongest bank in the Philippines for the second year in a row.
Metrobank also reaped a range of awards spanning the fields of commercial banking, treasury and retail banking. Metrobank was named the Best Cash Management Provider for MidCap clients by Asiamoney, the Best Securities House by the Philippine Dealing System (PDS Group) and was cited for having the Best Auto Loan Product by The Asian Banker.
Metrobank’s 2016 performance was driven by sustained low cost funds generation, which in turn supported the rapid expansion of commercial loans. Last year, the bank grew its loan book faster than industry, and strategically repositioned its balance sheet to provide a steady source of recurring income.
The bank’s CASA deposits kept its high growth rate of 21 percent to reach P846 billion. CASA ratio improved to 61 percent of the total P1.4 trillion deposit base, from 56 percent a year ago, and again provided the liquidity to support loan growth.
Net loans and receivables increased by 20 percent to breach the P1-trillon mark. The total loan portfolio hit P1.1 trillion, and accounts for 57 percent of total assets from 50 percent the previous year. The commercial segment led the growth, up 22 percent year-on-year as the bank supported the long-term capex requirements of its corporate clients as well as the working capital needs of the middle market and SME customers. The consumer segment on the other hand, maintained its solid volume growth of 16 percent, with auto loans growing fastest among the bank’s consumer assets.
Despite intense competitive pressures, the strong CASA generation and loan growth expansion allowed the bank to keep net interest margins steady for the year at 3.54 percent. This continues to be the highest among peers.
Total non-interest income increased 37 percent year-on-year to P25.2 billion. This came from P11.6 billion in service charges, fees and commissions and trust operations; P8.1 billion in net trading and FX gains, and P5.5 billion in other income.
Overall, the bank’s total revenues for 2016 increased 16 percent year-on-year to P78.2 billion.
Meanwhile, operating expenses grew 11 percent to P44.2 billion. This was driven mainly by manpower-related costs, in-line with plans to hire client-facing personnel to improve customer coverage. Other cost items were kept at a more manageable single-digit growth, notwithstanding the continued investment in technology, marketing, and customer acquisition initiatives.