Loan boom, trading gains lift Metrobank to record P37.3-B profit

Ty family-backed Metropolitan Bank & Trust Co. posted a record P37.3 billion in net income in the first nine months of the year, powered by double-digit loan growth, firmer margins, and resilient trading income.

The company informed the local bourse on Tuesday that its pre-provision operating profit increased 12.1 percent year-over-year to P59.2 billion amid sustained core business growth and disciplined cost management.

Strong long-term growth story

“Our prudent approach in expanding our core businesses continued to support our performance in the first nine months. We’re confident that the Philippines’ long-term growth story remains strong,” Metrobank president Fabian S. Dee said.

“We continue to be committed to helping our clients seize opportunities for growth as we navigate together any challenges and uncertainties on our journey ahead,” he added.

Net interest income rose 7.1 percent to P91.8 billion, driven by gains across business segments and steady margin growth. Loans grew 10.8 percent to P1.9 trillion, with consumer lending up 15.8 percent and institutional loans rising 9.5 percent.

Deposits increased 7.6 percent to P2.5 trillion, of which P1.5 trillion came from low-cost current and savings accounts. The loan-to-deposit ratio stood at 76.6 percent, indicating ample funding capacity.

Non-interest income went up 5.3 percent to P25.4 billion, boosted by higher service fees, trust income, and an 18 percent jump in trading and foreign exchange gains to P6.6 billion.

Operating costs rose just 1.7 percent, improving the cost-to-income ratio to 49.8 percent from 52.2 percent a year earlier.

Total assets climbed 8.9 percent to P3.6 trillion, while equity grew 7.2 percent to P407.6 billion, keeping Metrobank as the country’s second-largest private universal bank.