Metrobank grew Q1 profit to P12.3B
Higher expenses for bad loans tempered the first-quarter net income growth of Metropolitan Bank and Trust Co. (Metrobank), whose bottom line during the period inched up by 2.5 percent to P12.3 billion.
The Ty family-led bank said in a regulatory filing on Wednesday its net interest income in the first three months of the year edged up by 2.4 percent to P29.4 billion.
“Our first quarter performance keeps us on track in achieving our medium-term growth strategies even as global uncertainties continue to persist,” Metrobank president Fabian Dee said in a disclosure.
Gross loans rose by 16.1 percent, buoyed by growth in the commercial and consumer segments. The loan book expansion, however, resulted in Metrobank’s provisions ballooning by 362 percent to P2.6 billion.
Nonperforming loans ratio eased to 1.6 percent from 1.7 percent. Deposits were lower by 2.3 percent to P2.2 trillion. Alfred Benjamin Garcia, research head at AP Securities Inc., noted that Metrobank’s tempered net income growth may be due to a decline in net interest margins.
Net interest margin measures the difference between revenue generated from interest-earning assets and interest expenses. In Metrobank’s case, its net interest margin declined to 3.62 percent from 4 percent.
