Metrobank reports P2.5 billion income for Q1

May 2, 2010 11:27 am 

MANILA, May 2 – Metropolitan Bank and Trust Company (Metrobank), in its disclosure to the Philippine Stock Exchange, announced that its consolidated net income for the first quarter amounted to P2.5 billion, up by 31.7 percent from P1.9 billion last year.

The bank ended the quarter with consolidated resources of P833.4 billion, or 9.1 percent higher year-on-year. This is mainly driven by the 8.6-percent growth in deposits to P602.1 billion.

Meanwhile, net loans and receivables increased by 2.1 percent to P338.7 billion, on the back of increased demand in the corporate segment, particularly for power generation and distribution and real estate development, as well as the sustained volumes from the consumer and middle market segments.

Total operating income increased by 6.8 percent to P11.4 billion due to higher fee income, sustained remittance flows and financial markets sales and trading.

Meanwhile, operating expenses grew 9.4 percent to P7.0 billion, driven by the 9.1-percent increase in manpower cost.

Metrobank maintained its prudent provisioning policy, setting aside P1.4 billion in provisions for impairment and credit losses.

At the end of the quarter, loan loss cover increased to 86.0 percent from 63.6 percent in the first quarter of 2009.

Asset quality continued to improve this quarter as gross non-performing loans (NPLs) further declined by P4.7 billion, thus NPL ratio was down to 3.5 percent from 5.0 percent in the first quarter of 2009.

Metrobank’s capital position rose by 8.4 percent to P75.1 billion, from the P69.3 billion registered in 2009.

Consolidated capital adequacy ratio stood comfortably at 15.0 percent compared to 13.5 percent in 1Q2009, while Tier 1 ratio was at 10.4 percent from 10.1 percent in the same period last year.

Meanwhile, in its bid to diversify its revenue streams and capitalize on the potential of China’s economic development, Metrobank recently inaugurated its banking unit in China.

Metrobank’s branch and sub-branch in Shanghai were folded into the wholly-owned subsidiary, Metropolitan Bank (China) Limited (MBCL), the first foreign bank headquarters to be established in Nanjing.

As a wholly foreign-owned enterprise, MBCL will offer local residents an extensive range of financial products and services to accommodate the unique requirements of different customers, focusing on underserved markets primarily individual entrepreneurs and private companies.

Apart from its head office in Nanjing, MBCL has a branch and sub-branch in Shanghai and a representative office in Beijing. MBCL absorbed the China operations of Metrobank.

The Monetary Board has authorized Metrobank to invest up to RMB1.5 billion in MBCL. (PNA)

LDV/PFN

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