Metropolitan Bank & Trust Company (Metrobank) Reported P12 Billion in Net Income in Q124, Up 14%

In the first quarter of 2024, Metropolitan Bank & Trust Co. (Metrobank) recorded net earnings of P12.0 billion, a 14.5% increase over the previous year. As a result, the return on equity (ROE) increased to 13.7% from 13.1% in the previous year. The bank's steadily increasing lending portfolio, improved operational effectiveness, steady asset quality, and ongoing implementation of capital optimization policies were the main drivers of its rising profitability.

The bank's total consolidated assets have grown by 10.7% to P3.2 trillion, making it the second-highest asset base among private universal banks in the Philippines.

“As we remain focused on sustaining the Bank’s profitability, our strong commitment to our customers is at the center of our growth strategy. We will consistently offer tailored financial solutions that directly address the needs and goals of those we serve to help them build a more prosperous future,” said Metrobank President Fabian S. Dee.
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In the first three months of the year, the bank's net interest income increased by 15.4% to P28.7 billion compared to the same period last year, driven by steady growth in interest-earning assets and a better net interest margin of 4.0% from 3.9%.

This was supported by the continued expansion of its gross loans, which rose by 12.1% year-on-year. Commercial loans jumped by 11.2%, partly driven by rising capital expenditures of corporates. The Bank’s consumer loans portfolio remained robust, recording a 15.3% growth, led by a 25.5% increase in gross credit card receivables and 18.2% expansion in auto loans. Meanwhile, the Bank’s total deposits increased by 4.9% from the same period last year to P2.4 trillion, with low-cost current and savings accounts (CASA) contributing 58.6% of the total.
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The bank's cost-to-income ratio improved to 51.3% from 51.6% the previous year as a result of a mild 6.5% annual increase in operating expenses.

Meanwhile, the ratio of non-performing loans (NPLs) decreased to 1.7% from 1.8% in the first quarter of 2023—a significant decrease from the 3.5% NPL ratio that the banking sector reported in February of this year. The bank was able to reduce provisions from P2.4 billion a year earlier to P562 million during the quarter due to its consistent asset quality. With a strong NPL cover of 174.1%, the bank has a significant safeguard against any potential risks to the loan portfolio.
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The total equity of the bank was P345.7 billion. With a capital adequacy ratio of 16.8% and a common equity Tier 1 (CET1) ratio of 16.0%, which are both much higher than the minimal statutory requirements, capital ratios continue to be among the highest in the business.

In March 2024, Metrobank successfully completed the issuance of a historic US$1 billion dual tranche of notes denominated in U.S. dollars with maturities of five and ten years. The bond issue is the largest non-sovereign note issuance of USD $1 billion and the longest senior-dated note by a private domestic bank in the Philippines. The money raised will go toward the bank's main expansion plans.
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Metrobank was named the Best Bank for Ultra-High Net- Worth at the 2024 Euromoney Global Private Banking Awards, recognizing the bank's outstanding achievement in wealth management. Based on the results of The Asian Banker's Annual BankQualityTM Consumer Survey conducted in January 2024, The Asian Banker also recognized Metrobank as the Most Recommended Retail Bank in the Philippines.

​Metrobank is the country's second largest private universal bank that empowers both retail and business clients with customized financial products and services fit to help reach their goals and full potential. It has an extensive consolidated network that spans over 940 domestic branches nationwide, more than 2,300 ATMs, and above 30 foreign branches, subsidiaries, and representative offices. The Bank believes that its robust capital position and balance sheet strength will provide ample support as it navigates through uncertain times. Capital ratios are among the highest in the industry, with total CAR at 16.8% and Common Equity Tier 1 (CET1) ratio at 16.0%. Consolidated assets stood at P3.2 trillion at the end of March 2024, making it one of the strongest and well-capitalized banks in the country.