METROPOLITAN Bank and 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, 3 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. As a result of the superior metrics in these areas, as well as its ability to record long-term profitability from core businesses, The Asian Banker once again named Metrobank as the Strongest Bank in the Philippines for the second year in a row.
As a true financial adviser with a holistic approach to servicing client needs, 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 Mid- Cap clients by Asiamoney, the Best Securities House by the Philippine Dealing System (PDS Group) and 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 Casas 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 accounted 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 capital-expenditure requirements of its corporate clients, as well as the working capital needs of the middle market and small and medium enterprises customers. The consumer segment 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 noninterest 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.
Even as lending activities accelerated, Metrobank’s asset-quality metrics remained better than industry average. Nonperforming loans (NPL) ratio was at 0.94 percent by year-end, while NPL coverage continues to be more than adequate at 113 percent.
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.
Capital ratios continue to be comfortably ahead of the BSP Basel-3 minimum requirements. By year-end, total capital adequacy ratio (CAR) was at 15.5 percent, with Common Equity Tier 1 ratio at 12.5 percent. In terms of network reach, Metrobank ended the year with 959 branches and 2,305 automated teller machines nationwide. More important, over 50 percent of the group’s branches are located outside Metro Manila, positioning Metrobank to take advantage of the high-growth areas of the country.
Metrobank is the country’s premier universal bank and has one of the largest domestic networks with 959 branches and over 2,305 automated teller machines (ATMs) nationwide, and 32 foreign branches, subsidiaries and representative offices.