Investors get higher dividends on better profitability
Metropolitan Bank & Trust Co. (Metrobank) posted record earnings of PHP42.2 billion, 28.9% higher year-on-year. This earnings translated to a return on equity (ROE) of 12.5%, higher than 10.3% in 2022. Total consolidated assets expanded by 9.2% to PHP3.1 trillion in 2023, maintaining its status as the country’s second-largest private universal Bank.
The Bank’s strong profitability and substantial capital base prompted the Board of Directors to approve a total cash dividend of PHP5.00 per share for the year. The regular dividend was raised from PHP1.60 to PHP3.00 per share to be paid semi-annually at PHP1.50 per share. In addition, a special cash dividend of PHP2.00 per share was also declared. The first payout of PHP3.50 will be given to shareholders on record as of March 8, 2024.
“Our solid performance in 2023 was strongly driven by our asset expansion, higher margins, improving efficiency levels, and better asset quality. This performance indicates that we are firmly on track with our long-term growth strategies supported by our competent and resilient team of Metrobankers and strong balance sheet. We look forward to further expanding our partnerships with all our stakeholders,” said Metrobank President Fabian S. Dee.
The Bank’s net interest income grew by 22.7%, fueled by higher loan demand and a better % net interest margin of 3.9%. Gross loans rose 7.6% year-on-year, with consumer portfolio increasing by 15.9% on discretionary solid spending, outpacing the 5.5% rise in commercial loans. Meanwhile, total deposits grew by 7.3% from the previous year to PHP2.4 trillion, with low-cost current and savings accounts (CASA) amounting to more than 60% or PHP1.4 trillion.
Fee income increased by 9.0% to PHP16.4 billion, driven mainly by the expanding consumer business. Trading and forex gains were steady at PHP4.0 billion.
The cost-to-income ratio eased to 52.1% from 54.3% in 2022. The robust revenue growth offset the 14.0% increase in operating expenses, driven by transaction-related taxes, technology costs, and higher workforce in line with capacity expansion.
Asset quality continued to improve. The non-performing loans (NPLs) ratio eased to 1.7% from 1.9% in 2022, well below the banking system’s 3.3% NPL ratio. Moreover, the Bank’s NPL cover remained substantial at 180.3%, reflecting its ability to weather any risks to the loan portfolio.
The Bank’s total equity stood at PHP356.7 billion. At the same time, capital ratios remain one of the highest in the industry, with a capital adequacy ratio at 18.3% and a Common Equity Tier 1 (CET1) ratio at 17.4%, all well above the minimum regulatory requirements.
Metrobank’s notable performance continued to be recognized by top financial publications in 2023. Metrobank received back-to-back awards from The Banker as the country’s “Bank of the Year”; the Asian Banker’s “Strongest Bank in the Philippines” for the third year; and Asiamoney’s “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.
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