PHILIPPINES – Metropolitan Bank & Trust Company (Metrobank; PSE:MBT) reported a consolidated net income of P18.1 billion in 2016. Net income in the fourth quarter alone was at P5.5 billion, 3% higher than the comparative period in the previous year.
In a disclosure, Metrobank said it achieved all-time high levels in the Bank’s 54-year history in 2016. 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,” the bank said.
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 MidCap 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, Metrobank grew its loan book faster than industry, and strategically re-positioned its balance sheet to provide a steady source of recurring income.
The Bank’s CASA deposits kept its high growth rate of 21% to reach P846 billion. CASA ratio improved to 61% of the total P1.4 trillion deposit base, from 56% a year ago, and again provided the liquidity to support loan growth.
Net loans and receivables increased by 20% to breach the P1-trillon mark. The total loan portfolio hit P1.1 trillion, and accounts for 57% of total assets from 50% the previous year.
The commercial segment led the growth, up 22% year-on-year as Metrobank supported the long-term capex requirements of its corporate clients as well as the working capital needs of the middle market and SME customers.
The consumer segment on the other hand, maintained its solid volume growth of 16%, 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%. This continues to be the highest among peers.
Total non-interest income increased 37% 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% year-on-year to P78.2 billion. – BusinessNewsAsia.com