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Metrobank profits rise: We’re ready for bounce back – Fabian Dee

Ty-led Metropolitan Bank and Trust Co. clawed back into positive territory in the first quarter as higher fee income and better cost management allowed it to survive the Covid-19 pandemic crunch.

In a regulatory filing, Metrobank said its net income climbed 27.1 percent to P7.8 billion during the period.

Non-interest income grew 28 percent to P7.9 billion. This included P3.3 billion in service fees. Trust fee income rose 20 percent while net trading and foreign exchange gains doubled to P2.9 billion.

“Our capital position is double the regulatory minimum, with capital adequacy ratio of 19.9 percent and common equity tier 1 of 19 percent. Our reserves also cover 166 percent of our non-performing loans (NPL). This ensures that Metrobank will sustain its business resilience, and we remain confident that the bank is ready to take on opportunities as the economy recovers,” said Metrobank president Fabian S. Dee.

“We are in a strong position to withstand a resurgence in asset quality risks and we remain vigilant even as we all continue to battle the pandemic.” he added.

Metrobank’s deposits increased at a significant pace of 16 percent to P1.3 trillion, enabling the bank to reduce high-cost time deposits which partly mitigated the drop in asset yields arising from the previous rate cuts.

The bank booked P2.5 billion in provisions for credit losses, 50% lower than the previous year.

Operating expenses managed to rise by only 1.4 percent to P14.7 billion due to sustained efforts to enhance productivity and operational efficiency.

Metrobank is the country’s second largest bank with consolidated assets of P2.4 trillion and equity of P306.6 billion.

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