Metropolitan Bank & Trust Co. (Metrobank) has reported an increase in profit by 21% in 2018 or equivalent to P22 billion. This is considerably higher than what it generated in 2017, P18.2 billion to be exact. What a fruitful year for Metrobank and its investors! With this good news, some of you may wonder what fuels the increase on the profit of this known bank. So, how well 2018 has been for the firm?
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Investing Insights (Dubai) – March 1, 2019
Stock Smarts Manila — March 9, 10, 16, 17 & 23, 2019
Stock Smarts Cebu — April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore — May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stok Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
According to the firm, the major reason why their profit has increased by 21% is because of the healthy loan expansions in 2018. There has been an increase in loan bookings, margins, fees, service charges, and commissions. In fact, during the same year, the firm has made P68.8 billion net interest income, 12% higher than last year while the net interest margin jumped 3.82%. If compared to other banks, this is the highest among the competing firms in the industry. The company has also disclosed that the loan portfolio at the end of the year amounted to P1.4 trillion or 10% higher than 2017. 11% of it came from corporate accounts and the rest were from middle market and SMEs.
Aside from interest income from loans, Metrobank has also recorded a good performance on its deposits and non-interest income. In terms of deposits, it reached to 1.6 trillion in 2018, which is 2% higher year on year. Meanwhile, the total revenue of the firm is at P92.6 billion during the same year, of which 74% comes from net interest income. The non-interest income of the firms hiked 8% or P23.8 billion in figures. The firm added that the increase in non-interest income is due to the 13% rise combining service fees and commission.
Speaking of the expense side, the operating and labor expenses of Metrobank grew 10% and 11% respectively. The other expense recorded were used to improve the bank’s processes. As said by its President Fabian S. Dee, 2018 was turning point for them. Although the market has been challenging for the first 6 months, the company managed to grow their core income consistently. With a stronger firm at the end of 2018, the bank is considering future expansion this year via structural changes. The firm will also improve the efficiency and productivity across the organization.