Metrobank posts P6.12B net income in Q1 despite higher loan loss provisions

Metrobank reported a net income of P6.12 billion for the first quarter of 2020, a slight decrease of 9.3% from the previous year, largely due to a proactive doubling of its loan loss provisions to P5.0 billion to brace for the economic impact of the COVID-19 pandemic.

Despite the impact of increased provisions on net income, the bank's core business demonstrated robust growth with a 13% increase in gross revenue.

This revenue growth was fueled by a 6.0% expansion in loans, an 8.0% rise in deposits, and P6.2 billion in non-interest income.

Total deposits increased by 8% to P1.7 trillion, with a significant 18% growth in CASA deposits, improving the CASA ratio to 66%.

Net loans and receivables grew by 6% to P1.4 trillion, indicating continued support for customer business requirements across various segments.

Non-interest income reached P6.2 billion, boosted by a 7% increase in service fees and commissions and net trading and FX gains.

Metrobank's cost-to-income ratio improved to 53% from 56% in the same period last year, indicating enhanced operational efficiency.

The bank maintained a stable non-performing loans (NPL) ratio of 1.4% and significantly improved its NPL cover to 114%.

Metrobank remains well-capitalized with a total equity of P305 billion, with capital ratios well above regulatory minimums.

The bank has pledged P200 million, alongside the GT Capital Holdings Group, to support communities affected by the enhanced community quarantine and aid in the fight against the virus.