Metrobank's profits up by nearly half as margins rise, costs fall
11/16/2009 | 09:19 PM
Earnings of Metropolitan Bank and Trust Co. surged by nearly half after it increased margins on low-cost deposits and cut costs.
Profits of Metrobank, the Philippines’ second-largest lender, reached P1.5 billion from July to September this year, 48.9 percent higher than the same period last year.
From January to September, the George Ty-controlled bank earned P4.6 billion, 23.9 percent more than the same period last year, the lender said in a statement.
Interest income for the nine-month period grew 22.4 percent to P20.6 billion driven by sustained margins and improved funding mix, it said.
“Margins were sustained as low cost deposits grew faster than the overall deposit book, thus it now accounts for 46.9 percent of total deposits," the lender said.
In the meantime, non-interest income – composed of charges, fees, commissions – rose to P4.9 billion.
Trading and foreign exchange gains contributed P3.6 billion to its non-interest income category.
During the period, operating expenses fell by 5.6 percent – a result of its efforts to improve efficiency – bringing net operating income before provisions to P12.8 billion.
The figure is higher than the P10.8 billion reported last year.
The lender’s non-performing loans (NPL) dropped by 26.2 percent or P4.8 billion.
As a result, its NPL ratio – the amount of bad loans to its total loans – also declined to 4.1 percent for the nine-month period, lower than last year’s 5.3 percent.
As of September 30, 2009, Metrobank had P793.1 billion in consolidated assets, with a capital position of P75.2 billion.
Its capital adequacy ratio – which measures its ability to absorb risk – stood strong at 14.5 percent with Tier 1 ratio at 10.1 percent.
Metrobank has more than 1,150 automated teller machines (ATMs) nationwide, 730 local branches, and 35 foreign branches, offices, and subsidiaries.
Shares of Metrobank rose fifty centavos to P43.50 during Monday’s trading at the Philippine Stock Exchange (PSE). - GMANews.TV
Profits of Metrobank, the Philippines’ second-largest lender, reached P1.5 billion from July to September this year, 48.9 percent higher than the same period last year.
From January to September, the George Ty-controlled bank earned P4.6 billion, 23.9 percent more than the same period last year, the lender said in a statement.
Interest income for the nine-month period grew 22.4 percent to P20.6 billion driven by sustained margins and improved funding mix, it said.
“Margins were sustained as low cost deposits grew faster than the overall deposit book, thus it now accounts for 46.9 percent of total deposits," the lender said.
In the meantime, non-interest income – composed of charges, fees, commissions – rose to P4.9 billion.
Trading and foreign exchange gains contributed P3.6 billion to its non-interest income category.
During the period, operating expenses fell by 5.6 percent – a result of its efforts to improve efficiency – bringing net operating income before provisions to P12.8 billion.
The figure is higher than the P10.8 billion reported last year.
The lender’s non-performing loans (NPL) dropped by 26.2 percent or P4.8 billion.
As a result, its NPL ratio – the amount of bad loans to its total loans – also declined to 4.1 percent for the nine-month period, lower than last year’s 5.3 percent.
As of September 30, 2009, Metrobank had P793.1 billion in consolidated assets, with a capital position of P75.2 billion.
Its capital adequacy ratio – which measures its ability to absorb risk – stood strong at 14.5 percent with Tier 1 ratio at 10.1 percent.
Metrobank has more than 1,150 automated teller machines (ATMs) nationwide, 730 local branches, and 35 foreign branches, offices, and subsidiaries.
Shares of Metrobank rose fifty centavos to P43.50 during Monday’s trading at the Philippine Stock Exchange (PSE). - GMANews.TV
