Metro Manila (CNN Philippines, February 24) — Metrobank’s earnings rose 60% in 2021, thanks to a strong performance in the last quarter of the year, it said on Thursday.
The Ty family-led bank disclosed to the local stock exchange a net income of ₱22 billion for the period, climbing from ₱13.8 billion in 2020.
The full-year figure came as one of the country’s largest banks reported earnings “more than doubled” in the last three months of 2021, which the listed bank attributed to lower loan provisions, “robust” fees and other income, and lower operating expenses.
Metrobank reported an operating income of ₱101.4 billion for the stretch, while its net interest margin “stabilized” at 3.4% since the second quarter of 2021.
“The sequential quarterly recovery in corporate and credit card loans has likewise been sustained, reflecting improving business and consumer confidence. The 12% increase in low cost current and savings accounts to ₱1.5 trillion continued to help trim over-all funding cost,” said Metrobank.
The bank also reported a 12% annual drop in non-performing loans (NPL) in 2021, with its NPL ratio falling to 2.2% from the 2.4% logged the year prior. Its NPL cover, meanwhile, fared better last year at 174.7% compared to 163% in 2020.
Fees and non-interest income hit ₱21.1 billion last year, a 27% growth driven by higher transaction volumes along with cross selling strategies. These offset lower trading income, added Metrobank.
It also kept operating costs “under control” at ₱59.5 billion amid continued efforts to improve efficiencies.
“Our positive performance in 2021 validates our strategies of fortifying our balance sheet and proactive provisioning during the pandemic. The Bank has emerged stronger and well-prepared to meet the needs of our stakeholders as the economy moves towards full recovery,” said Metrobank president Fabian Dee.
