Metropolitan Bank & Trust Co. (Metrobank) announced recently that it has posted record earnings of P42.2 billion in full-year net income in 2023, which is 28.9% higher year-on-year. This has translated into a return on equity (ROE) of 12.5%, higher than the 10.3% posted in 2022.
The bank’s total consolidated assets also expanded by 9.2% to P3.1 trillion in 2023, maintaining its status as the country’s second-largest private universal bank. Metrobank’s strong profitability and substantial capital base prompted the Board of Directors to approve a total cash dividend of P5.00 per share for the year.
The regular dividend was also raised from P1.60 to P3.00 per share to be paid out on a semi-annual basis at P1.50 per share. In addition, a special cash dividend of P2.00 per share was also declared.
The first payout of P3.50 will be given to shareholders on record as of March 8, 2024.
Solid performance driven by asset expansion and better asset quality, among others
“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 Fabian S. Dee, President of Metrobank, in a press statement.
Fabian S. Dee, President of Metrobank
Fueled by higher loan demand and a better net interest margin of 3.9%, the bank’s net interest income grew by 22.7%. Gross loans rose by 7.6% year-on-year, with consumer portfolio increasing by 15.9% on strong discretionary spending, outpacing the 5.5% rise in commercial loans.
Meanwhile, total deposits grew by 7.3% from the previous year to PHP2.4 trillion with low-cost current and savings accounts (CASA) amounting to more than 60% or PHP1.4 trillion.
Fee income increased by 9.0% to PHP16.4 billion, largely driven by the expanding consumer business. Trading and forex gains were steady at PHP4.0 billion.
The cost-to-income ratio eased to 52.1% from 54.3% in 2022. The robust revenue growth offset the 14.0% increase in operating expenses, which was driven by transaction-related taxes, technology costs and higher manpower in line with capacity expansion.
Asset quality continued to improve. Non-performing loans (NPLs) ratio eased to 1.7% from 1.9% in 2022, well below the banking system’s 3.3% NPL ratio. Moreover, the Bank’s NPL cover remained substantial at 180.3%, reflecting its ability to weather any risks to the loan portfolio.
The bank’s total equity stood at PHP356.7 billion, while capital ratios remain to be one of the highest in the industry, with a capital adequacy ratio at 18.3% and Common Equity Tier 1 (CET1) ratio at 17.4%, all well above the minimum regulatory requirements.
Metrobank’s notable performance continued to be recognized by top financial publications in 2023.
Last year, 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”. It also won “Best Bank for the Ultra High Net Worth” and “Best Service for the Philippines” in the Asia Money Trade Finance Survey.