METROPOLITAN Bank & Trust Co.’s (Metrobank) net income rose by 11.35% in the third quarter amid higher revenues as it booked growth in both interest and non-interest earnings.

The Ty-led bank’s attributable net profit stood at P12.124 billion in the three months ended September, up from P10.888 billion in the same period last year, the bank’s financial statement disclosed to the stock exchange on Tuesday showed.

This brought Metrobank’s net income for the first nine months to a record P35.729 billion, up by 12.4% year on year from P31.786 billion, “supported by the bank’s strong asset expansion, recovery in non-interest income and improved asset quality,” it said in a statement.

This translated to a return on equity of 12.93%, rising from 12.83% a year ago, and a return on assets of 1.48%, up from 1.46%.

“Our robust results reflect our strong drive to continue supporting the growing needs of our clients, all while preserving the health of our portfolio. We look forward to the positive impact of recent regulatory measures on the banking industry alongside improving economic outlook,” Metrobank President Fabian S. Dee said.

The bank’s net interest income went up by 4.1% to P27.752 billion in the third quarter from P26.658 billion a year ago.

This came as its interest earnings increased by 12.93%, driven by higher income from loans and receivables and investment securities. Interest expenses grew by a faster 30.94% in the period.

Net interest margin was at 3.9% at end-September, down from 3.93% a year ago.

Metrobank’s other income surged by 50.39% to P12.063 billion from P8.021 billion as it posted higher net trading, securities and foreign exchange gains and fee income in the quarter.

On the other hand, the lender’s total operating expenses went up by 17.25% to P20.597 billion from P17.566 billion amid higher manpower and miscellaneous costs.

Its cost-to-income ratio stood at 52.2% at end-September.

Metrobank’s gross loans expanded by 15.6% as of September.

“Commercial loans surged 16.6% as firms resumed capital spending and built up their inventories. On the other hand, consumer loans grew by 12.3% driven by a 16.6% rise in net credit card receivables and 15.7% growth in auto loans,” the bank said.

Despite the increase in its loans, Metrobank’s asset quality improved as its nonperforming loan (NPL) ratio eased to 1.59% as of September from 1.74% a year prior as it remained “prudent in its lending business,” it said.

“As a result, provision costs declined by 48.2% year on year. Nonetheless, NPL cover remains high, at 161.9%, providing a substantial buffer against any risks to the portfolio.”

Meanwhile, total deposits stood at P2.28 trillion as of September, with low-cost current and savings account or CASA deposits making up 62.3% of the total.

Its loans-to-deposits ratio went up to 74.4% from 62.62% a year ago.

Metrobank’s total assets stood at P3.34 trillion at end-September, and total equity was at P380.14 billion.

Its common equity Tier 1 ratio was at 16.3%, down from 17.59% a year prior, while its capital adequacy ratio was at 17.1%, lower than 18.42%. Still, both remained well above the central bank’s minimum requirements.

The bank’s liquidity ratio inched down to 47.49% from 48.89%, while its liquidity coverage ratio was at a “healthy” 258.4%.

The Metrobank Group had 956 branches, 1,303 on-site automated teller machines (ATMs) and 1,001 off-site ATMs as of Sept. 30.

Metrobank’s shares dropped by P3.20 or 4.07% to close at P75.50 apiece on Tuesday. — A.M.C. Sy