Metropolitan Bank & Trust Co. and Bank of the Philippines Islands, two of the country’s largest banks, reported double-digit growth in net income in the third quarter on strong lending and deposit taking businesses.
Metrobank, the second-biggest lender in terms of assets, said net income in the third quarter surged 55 percent to P5.7 billion from P3.7 billion a year ago on the sustained strength of its core businesses.
Metrobank said the third-quarter performance brought the net profit in the first nine months to P16.8 billion, or 27 percent higher than a year ago.
The growth was driven by the solid performance of the core business, as double-digit growth in loans and sustained Casa (current account, savings account) ratio lifted margins, while the increase in operating expenses was kept at a manageable level.
“The strong performance during the nine-month period is very encouraging especially amidst inflation concerns and rising interest rates. Credit demand remains healthy, and the bank continues to grow cautiously its consumer, business and infrastructure-related loan portfolio without incurring unnecessary risks to asset quality and profitability,” Metrobank chairman Arthur Ty said in a statement.
“We will continue to be a key player in the country’s economic development, anchored on our long-term strategy of growth, good governance and sustainability,” Ty said.
Total loan portfolio expanded 15 percent year-on-year to P1.3 trillion, within the company guidance. Total deposits inched up by 5 percent to P1.5 trillion as of end-September.
Asset quality metrics remained healthy and better than industry average. Non-performing loans ratio stayed at 1.2 percent, while NPL cover was maintained at 110 percent.
Metrobank’s consolidated assets hit P2.1 trillion and equity reached P277.5 billion as of end-September.
Meanwhile, BPI, the third-largest lender, said net income in the third quarter rose 12 percent to P5.98 billion from P5.36 billion a year ago, on the back of a 21-percent expansion in net interest income.
Net income in the first nine months was flat at P17.01 billion on lower trading gains. Comprehensive income was P15.30 billion.
Total revenues increased 7.3 percent to P56.89 billion, on the back of a 15.1-percent growth in net interest income to P40.88 billion.
“The increase in net interest income was a result of a 9.4-percent increase in average asset base, and a 17-basis point expansion in net interest margin. Interest income from loans grew by 24.2 percent year-on-year as the yield on interest-earning assets improved by 37 basis points,” BPI said in a statement Wednesday.
This was partially offset by a 24-basis point increase in cost of funds due to higher time deposit rates and higher documentary stamp taxeson deposits.
“Net interest margin continues its upward trend, steadily increasing to 3.24 percent in the third quarter from 3.10 percent in the second quarter, and from 2.91 percent in the first quarter,” the bank said.
Total loans jumped 12.9 percent to P1.27 trillion, boosted by the strong growth in corporate loans and credit card loans at 13.7 percent and 22 percent, respectively.
Deposits rose 2.5 percent to P1.54 trillion, with Casa accounts registering faster growth at 6.4 percent.
