Metrobank books 29% increase in full-year net income in 2023

Metrobank recorded a significant 29% increase in its full-year net income for 2023, reaching an impressive PHP 42.2 billion.

This robust growth represents a 28.9% rise from the previous year. The return on equity (ROE) climbed to 12.5%, a notable improvement from 10.3% in 2022.

Additionally, the bank’s total consolidated assets grew by 9.2%, reaching PHP 3.1 trillion and securing its position as the country’s second-largest private universal bank.

Reflecting on the bank’s strong profitability and a solid capital foundation, Metrobank’s Board of Directors decided to reward investors with a higher cash dividend.

For the year, a total dividend of PHP 5.00 per share was approved, with the regular dividend increasing from PHP 1.60 to PHP 3.00 per share, to be distributed semi-annually at PHP 1.50 per share.

Furthermore, a special cash dividend of PHP 2.00 per share was declared. Shareholders on record as of March 8, 2024, will receive the first payout of PHP 3.50.

“Our solid performance in 2023 was a direct result of our strategic focus on asset expansion, higher margins, improved efficiency, and enhanced asset quality,” Metrobank President Fabian S. Dee explained.

“These achievements confirm that we are advancing well with our long-term growth strategies, backed by our highly skilled and resilient team of Metrobankers and a robust balance sheet. We are excited to continue building our partnerships with all stakeholders.”

The bank’s net interest income saw a 22.7% increase, spurred by a rise in loan demand and an improved net interest margin of 3.9%.

The gross loans portfolio grew by 7.6% year-on-year, with the consumer segment expanding by 15.9% due to robust discretionary spending, surpassing the 5.5% increase in commercial loans.

In tandem, total deposits witnessed a 7.3% growth from the previous year, amounting to PHP 2.4 trillion, with more than 60%, or PHP 1.4 trillion, in low-cost current and savings accounts (CASA).

Fee income rose by 9.0% to PHP 16.4 billion, largely due to the growing consumer business, while trading and forex gains held steady at PHP 4.0 billion.

The cost-to-income ratio improved, dropping to 52.1% from 54.3% in 2022. This was even as operating expenses rose by 14.0%, attributable to transaction-related taxes, increased technology costs, and a rise in manpower for capacity expansion.

The asset quality of the bank continued on an upward trend. The non-performing loans (NPLs) ratio declined to 1.7% from 1.9% in 2022, remaining significantly below the banking system’s average of 3.3%.

The bank’s NPL coverage ratio stood at an impressive 180.3%, indicating a strong safety net against potential risks in the loan portfolio.

Metrobank’s total equity was reported at PHP 356.7 billion. The bank maintained some of the industry’s highest capital ratios, with a capital adequacy ratio of 18.3% and a Common Equity Tier 1 (CET1) ratio of 17.4%, comfortably exceeding the minimum regulatory requirements.

The bank’s outstanding performance in 2023 did not go unrecognized by the industry. Metrobank was honored with several prestigious awards: The Banker named it the country’s “Bank of the Year” for the second consecutive year; the Asian Banker awarded it the “Strongest Bank in the Philippines” for the third consecutive year; and Asiamoney granted it multiple accolades, including “Best Domestic Private Bank”, “Best Bank for the Ultra High Net Worth” and “Best Service for the Philippines” in the Asia Money Trade Finance Survey.