Metrobank net income surges 40% to P2.11B

Metrobank announced yesterday that it posted a 40.38 percent growth in net income to P2.11 billion in 2001 from P1.50 billion in 2000 and maintained its top financial ranking for 2001 in terms of resources, loans, deposits, and capital.

Metrobank president Antonio Abacan said that the improvement in the bank’s net income was due to its positioning for more favorable spreads on traditional products, coupled with the continued implementation of efficient cost control measures.

The bank’s interest income rose by 27.29 percent or P2.84 billion to P13.23 billion last year from P10.39 billion in 2000. This is attributed to the 9.94 percent growth in its interest income on loans in selected sectors such as real estate, renting and business activities, wholesale and retail trade, and in financial intermediations; as well as the 19.21 percent improvement in interest on investment securities, interbank-loans receivable, deposits with banks and others.

On the other hand, other expenses were reduced by 3.15 percent or P468.78 million to P14.41 billion from P14.88 billion.

With P2.87 billion set aside as additional provision for probable losses for 2001, the bank’s total provisions for probable losses reached P19.13 billion, which amply provides for any losses the bank and its subsidiaries may incur.

Abacan also reported three milestones in the bank’s 40-year history. These were: the inauguration of the bank’s Shanghai Branch, the first Philippine bank in China; the decision to merge with commercial bank subsidiary Globalbank to further achieve cost efficiency; and the issuance at the turn of the year of $100 million in subordinated debt to further beef up capital.

Reinforcing its leadership in the banking industry, Metrobank’s total consolidated resources stood at P470.73 billion at yearend. This figure is 6.50 percent or P28.72 billion higher than the previous year‘s P442.01 billion. The increase was due to a 5.63 percent or P19.55-billion growth in consolidated deposits, from P347.51 billion in 2000 to P367.06 billion in 2001, as well as the $100-million subordinated debt issue.

The increase in consolidated deposits, in turn, was attributed to growths in savings and time deposits of 6.13 percent and 5.85 percent respectively.