Metropolitan Bank & Trust Company Reported a PHP 42.2 Billion Net Income, Up 28.9%

Metropolitan Bank & Trust Co. (Metrobank) reported record earnings of PHP42.2 billion, up 28.9% year on year. This translated into a 12.5% return on equity (ROE), up from 10.3% in 2022. Total consolidated assets increased by 9.2% to PHP3.1 trillion in 2023, cementing its position as the country's second largest private universal bank.

The Bank's excellent profitability and considerable capital base encouraged the Board of Directors to declare a total cash dividend of PHP5.00 per share for the year. The regular dividend was raised from PHP1.60 to PHP3.00 per share and will be paid out semi-annually at PHP1.50 per share. In addition, a special cash dividend of PHP 2.00 per share was issued. The first distribution of PHP3.50 will be made to shareholders with records as of March 8, 2024.

“Our solid performance in 2023 was strongly driven by our asset expansion, higher margins, improving efficiency levels and better asset quality. This indicates that we are firmly on track with our long-term growth strategies supported by our highly capable and resilient team of Metrobankers and strong balance sheet. We look forward to further expanding our partnerships with all our stakeholders,” said Metrobank President Fabian S. Dee.

The bank's net interest income increased by 22.7% as loan demand increased, and the net interest margin improved to 3.9%. Gross loans increased by 7.6% year on year, with the consumer portfolio growing by 15.9% due to strong discretionary expenditure, exceeding the 5.5% increase in commercial loans. Meanwhile, overall deposits increased by 7.3% from the previous year to PHP2.4 trillion, with low-cost current and savings accounts (CASA) accounting for more than 60% (PHP1.4 trillion).

Fee income climbed by 9.0% to PHP16.4 billion, mainly due to the growing consumer business. Trading and FX gains remained stable at PHP4.0 billion.

The cost-to-income ratio dropped to 52.1% from 54.3% in 2022. The strong revenue growth was countered by a 14.0% increase in operational expenses, which were driven by transaction-related taxes, technology costs, and more staff in response to capacity development.

Asset quality has continued to increase. The non-performing loans (NPLs) ratio fell to 1.7% from 1.9% in 2022, significantly lower than the banking system's 3.3% NPL percentage. Furthermore, the bank's NPL cover remained strong at 180.3%, demonstrating its capacity to weather any threats to the loan portfolio. 

The bank's total equity stood at PHP 356.7 billion, and its capital ratios remained among the highest in the business, with a capital adequacy ratio of 18.3% and a Common Equity Tier 1 (CET1) ratio of 17.4%, both considerably above the minimal regulatory standards.

Metrobank's outstanding performance was recognized by leading financial publications in 2023. Metrobank received back-to-back awards from The Banker as the country's "Bank of the Year," the Asian Banker's "Strongest Bank in the Philippines" for the third year, and Asiamoney's "Best Domestic Private Bank," Best Bank for the Ultra High Net Worth, and "Best Service for the Philippines" in the Asia Money Trade Finance Survey.

Metrobank, the country's second-largest private universal bank, offers personalized financial products and services to help individuals and businesses achieve their full potential. It has a large integrated network that includes over 940 domestic branches nationally, over 2,300 ATMs, and more than 30 international branches, subsidiaries, and representative offices.