TY-LED Metropolitan Bank & Trust Co. (Metrobank) on Thursday reported a 28.9-percent increase in net income last year to P42.2 billion from P32.8 billion a year earlier.
The solid performance was "strongly driven by our asset expansion, higher margins, improving efficiency levels and better asset quality," Metrobank President Fabian Dee said in a statement.
"This indicates that we are firmly on track with our long-term growth strategies," he added.
The country's third-largest bank in terms of assets, per Bangko Sentral ng Pilipinas data, said interest income grew by 50.06 percent to P153.6 billion last year from P102.4 billion.
This was attributed to higher returns from loans and receivables, investment securities and interbank loans receivable, resulting in a 22.7-percent expansion in net interest income to P105 billion from P85.5 billion.
In a disclosure, Metrobank said its fee income rose 9.0 percent to P16.4 billion, "driven by the expanding consumer business," while trading and foreign exchange gains "were steady at P4.0 billion."
Total operating expenses widened 14 percent to P69.52 billion on higher transaction-related taxes plus increased technology and manpower costs in line with the bank's capacity expansion.
Asset quality further improved as cost-to-income ratio eased to 52.1 percent from 54.3 percent in 2022, while its nonperforming loans (NPL) ratio shrank to 1.7 percent from 1.9 percent a year earlier, "well below the banking system's 3.3 percent NPL ratio."
"NPL cover remained substantial at 180.3 percent, reflecting its ability to weather any risks to the loan portfolio," Metrobank said.
Total assets grew by 9.2 percent to P3.1 trillion last year, which Metrobank said cemented its status as the country's second-largest private universal bank.
"The bank's total equity stood at P356.7 billion, while capital ratios remain to be one of the highest in the industry, with capital adequacy ratio at 18.3 percent and Common Equity Tier 1 (CET1) ratio at 17.4 percent, all well above the minimum regulatory requirements," the Ty-led bank said.
Metrobank shares were up by P1.35, or 2.3 percent, at P60.05 each on Thursday amid a flattish finish for the benchmark Philippine Stock Exchange index, which ended up 0.08 percent.
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