Metrobank president Antonio S. Abacan Jr. said the first quarter growth was due to the improved performance of its core businesses while keeping costs at bay.
"We have successfully recorded improvements in most areas of our operations so far," Abacan said, adding that the income was net of provisions for probable losses of P503 million. The provisioning went up by 67.6 percent, or P203 million more than in the same quarter last year.
The bank’s net interest spreads expanded by 20 basis points as loans grew with better yields while cost of funds was maintained at last year’s levels.
Overhead expenses were well-controlled in the quarter, increasing by a mere 1.3 percent or P41.7 million compared to the same quarter last year.
Other operating income grew 13.1 percent year-on-year on account of increases in bank commissions, service charges and other fee-based income, improved results from treasury operations, and higher other income, including contributions from its trust business.
Income from trust operations grew 28.6 percent due to the continued growth in the volume of assets being managed by its Trust Banking Group. As of December 2004, the trust fund this volume has risen significantly to P147 billion from P107 billion in 2003 and P70.9 billion in 2002.
The group also managed other assets amounting to P77 billion, bringing the total assets under management to P224 billion last year.
The bank had reported a net income of P3.62 billion and total resources of P460 billion in 2004.
Net interest income increased by 30.4 percent to P11.9 billion, from only P9.1 billion in 2003.
Metrobank’s capital base remained at P52.8 billion.