Metropolitan Bank & Trust Company said Thursday it posted P6.1-billion in net income in the first quarter of 2020.
The bank’s core business grew strongly with sustained 13-percent gross revenue growth, driven by 6-percent increase in loans, 8-percent growth in deposits and non-interest income reaching P6.2 billion.
Recognizing the potential impact of the COVID-19 pandemic, the bank proactively doubled provisions to P5 billion, which tempered this quarter’s net income to P6.12, compared to P6.75 billion in the same period last year.
“Our underlying business is strong. We started the year with healthy growth in loans, deposits and other revenue streams,” said Metrobank president Fabian Dee.
“However, current conditions point to an expected slowdown in the business environment and challenges ahead. Mindful of the potential impact of this pandemic, we decided to take the prudent approach of increasing provisions to cover anticipated risks,” Dee said.
“We have weathered periods of crisis in the past and we are confident that we are well prepared, as the bank has one of the strongest capital positions in the industry. We will continue to adjust our processes to ensure the sustained delivery of meaningful banking services; and implement the necessary measures to keep both our customers and our people safe,” he said.
Metrobank said for the quarter ending March, the bank recorded an 8-percent increase in total deposits to P1.7 trillion. This was achieved with the 18-percent growth in CASA deposits, resulting in an improved CASA ratio of 66 percent from 61 percent last year.
Metrobank continued to support customers’ business requirements across all segments from corporates, middle market, SMEs and retail. This is reflected in the 6-percent growth in net loans and receivables to P1.4 trillion.
Meanwhile, non-interest income reached P6.2 billion, driven by the 7-percent growth in service fees and commissions to P3.3 billion, and net trading and FX gains of P1.4 billion.
Gross operating revenues for the period rose 13 percent to P27.6 billion, while operating cost grew 8 percent to P14.5 billion. As a result, cost-to-income ratio improved to 53 percent from 56 percent in the same period last year.
Non-performing loans ratio was relatively stable at 1.4 percent and the NPL cover substantially improved to 114 percent.
It said to anticipate the possible impact of the pandemic, the bank increased provisions to P5 billion, more than double the P2.4 billion in the first quarter last year.
Metrobank is one of the largest and most stable banks in the country, with a strong balance sheet and asset base of P2.4 trillion. The bank is well-capitalized with total equity of P305 billion.
Capital ratios continue to be well above the regulatory minimum requirement of 10 percent for total capital adequacy ratio. The bank’s total CAR is at 17.6 percent and common equity tier 1 ratio is at 16.3 percent.
Metrobank said that amid the enhanced community quarantine, it continues to deliver meaningful banking services to its customers nationwide. More than 60 percent of branches remain open with online digital services significantly growing in enrollment and usage.
The Metrobank and GT Capital Holdings Group have pledged a P200-million fund to help communities most impacted by the ECQ and support the fight against the spread of the virus.
Through the Metrobank Foundation and GT Foundation, initiatives have been launched to assist vulnerable barangays, help produce more test kits and provide PPEs for frontline health workers and soldiers.
These group efforts are on top of the assistance extended by the bank to customers to help manage their finances as well as to employees.
