23 February 2017
Mr. Jose Valeriano B. Zuño lll
OIC - Head, Disclosure Department
PHILIPPINE STOCK EXCHANGE, INC.
3/F Philippine Stock Exchange Plaza,
Ayala Triangle, Ayala Avenue,
Makati City
Dear Mr. Zuño:
We enclose a copy of our press release entitled “Metrobank registers P18.1 billion profit in
2016”.
Thank you.
Very truly yours,
Juan Placido T. Mapa III
Head, Investor Relations
cc:
Philippine Dealing and Exchange Corp.
37/F, Tower 1,The Enterprise Center
6766 Ayala Avenue corner Paseo de Roxas
1226 Makati City, Philippines
METROPOLITAN BANK & TRUST COMPANY
Metrobank Plaza, Sen. Gil J. Puyat Avenue, 1200 Makati City, Philippines; Tel. no. (632) 898-8000 / 857-0000; Fax (632) 817-6248; www.metrobank.com.ph
23 February 2017
Metrobank registers P18.1 billion profit in 2016
Metropolitan Bank & Trust Company (Metrobank or the Bank) reported a consolidated
net income of P18.1 billion in 2016. Net income in the fourth quarter alone was at P5.5
billion, 3% higher than the comparative period in the previous year.
In 2016, Metrobank achieved all-time high levels in the Bank’s 54-year history. Total
resources peaked at P1.9 trillion, total deposits reached P1.4 trillion, and total loans hit
P1.1 trillion.
Throughout this growth cycle, Metrobank maintained its strong balance sheet profile in
terms of liquidity, asset quality and capital adequacy. As a result of the superior metrics
in these areas, as well as its ability to record long-term profitability from core
businesses, The Asian Banker once again named Metrobank as the Strongest Bank in
the Philippines for the second year in a row.
As a true financial adviser with a holistic approach to servicing client needs, Metrobank
also reaped a range of awards spanning the fields of commercial banking, treasury and
retail banking. Metrobank was named the Best Cash Management Provider for MidCap clients by Asiamoney, the Best Securities House by the Philippine Dealing System
(PDS Group) and cited for having the Best Auto Loan Product by The Asian Banker.
Metrobank’s 2016 performance was driven by sustained low cost funds generation,
which in turn supported the rapid expansion of commercial loans. Last year, the Bank
grew its loan book faster than industry, and strategically re-positioned its balance sheet
to provide a steady source of recurring income.
The Bank’s CASA deposits kept its high growth rate of 21% to reach P846
billion. CASA ratio improved to 61% of the total P1.4 trillion deposit base, from 56% a
year ago, and again provided the liquidity to support loan growth.
Net loans and receivables increased by 20% to breach the P1-trillon mark. The total
loan portfolio hit P1.1 trillion, and accounts for 57% of total assets from 50% the
previous year. The commercial segment led the growth, up 22% year-on-year as the
Bank supported the long-term capex requirements of its corporate clients as well as the
working capital needs of the middle market and SME customers. The consumer
segment on the other hand, maintained its solid volume growth of 16%, with auto loans
growing fastest among the Bank’s consumer assets.
METROPOLITAN BANK & TRUST COMPANY
Metrobank Plaza, Sen. Gil J. Puyat Avenue, 1200 Makati City, Philippines; Tel. no. (632) 898-8000 / 857-0000; Fax (632) 817-6248; www.metrobank.com.ph
Despite intense competitive pressures, the strong CASA generation and loan growth
expansion allowed the Bank to keep net interest margins steady for the year at
3.54%. This continues to be the highest among peers.
Total non-interest income increased 37% year-on-year to P25.2 billion. This came from
P11.6 billion in service charges, fees and commissions and trust operations; P8.1 billion
in net trading and FX gains, and P5.5 billion in other income.
Overall, the Bank’s total revenues for 2016 increased 16% year-on-year to P78.2
billion.
Meanwhile, operating expenses grew 11% to P44.2 billion. This was driven mainly by
manpower-related costs, in-line with plans to hire client-facing personnel to improve
customer coverage. Other cost items were kept at a more manageable single-digit
growth, notwithstanding the continued investment in technology, marketing, and
customer acquisition initiatives.
Even as lending activities accelerated, Metrobank’ asset quality metrics remained better
than industry average. Non-performing loans (NPL) ratio was at 0.94% by year-end,
while NPL coverage continues to be more than adequate at 113%.
Capital ratios, on the other hand, continue to be comfortably ahead of the BSP Basel-III
minimum requirements. By year-end, total capital adequacy ratio (CAR) was at 15.5%
with Common Equity Tier 1 (CET-1) ratio at 12.5%.
In terms of network reach, Metrobank ended the year with 959 branches and 2,305
ATMs nationwide. More importantly, over 50% of the Group’s branches are located
outside Metro Manila, positioning Metrobank to take advantage of the high growth areas
of the country.
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Metrobank is the country’s premier universal bank and has one of the largest domestic networks with 959 branches and over 2,305
automated teller machines (ATMs) nationwide, and 32 foreign branches, subsidiaries and representative offices. For inquiries,
please contact Corporate Communication Department at 857-5526, or Investor Relations Department at 857-9783 and
[email protected]. Or call the Metrobank 24/7 Customer Hotline at 8700-700, or log on to
www.metrobank.com.ph. For provincial areas, call toll-free 1-800-1888-5775.
METROPOLITAN BANK & TRUST COMPANY
Metrobank Plaza, Sen. Gil J. Puyat Avenue, 1200 Makati City, Philippines; Tel. no. (632) 898-8000 / 857-0000; Fax (632) 817-6248; www.metrobank.com.ph