Metrobank’s net income rises 60% to P22.2 billion in 2021; Increases regular dividends and issues special dividends on strong capital position
Metrobank’s net income rose by 60% to P22.2 billion in 2021. Earnings more than doubled to P6.0 billion in the fourth quarter of 2021, boosted by the decline in provisions as the loan portfolio stayed healthy. Robust fees and other income as well as lower operating expenses further drove strong earnings performance.
With the Bank’s solid capital base and better profitability, the Board of Directors approved a new dividend policy of increasing the regular cash dividends from P1.00 to P1.60 per share for the year, payable on a semi-annual basis at P0.80 per share. In addition, a special cash dividend of P1.40 per share was also declared for a total of P3.00 per share for the year.
“Our positive performance in 2021 validates our strategies of fortifying our balance sheet and proactive provisioning during the pandemic. The Bank has emerged stronger and well-prepared to meet the needs of our stakeholders as the economy moves towards full recovery”, says Metrobank President Fabian S. Dee.
Operating income reached P101.4 billion in 2021. Net interest margin has stabilized at 3.4% since the second quarter of 2021. The sequential quarterly recovery in corporate and credit card loans has likewise been sustained, reflecting improving business and consumer confidence. The 12% increase in low cost current and savings accounts (CASA) to P1.5 trillion continued to help trim over-all funding cost.
Fees and other non-interest income jumped by 27% to P21.1 billion in 2021 on the back of higher transaction volumes and cross selling strategies, which mitigated lower trading income. On the other hand, efforts to improve efficiencies continue to pay off as operating costs were kept under control at P59.5 billion.
Despite the challenging conditions in 2021, non-performing loans (NPLs) declined by 12% YoY with NPL ratio easing to 2.2% in 2021 from 2.4% in 2020. NPL cover further improved to 174.7% from 163.0% in 2020.
Metrobank ended 2021 as the country’s second largest private universal bank with consolidated assets of P2.5 trillion and total equity of P318.5 billion. The Bank’s capital ratios are still among the highest in the industry. Based on December 2021 balance sheet, Metrobank’s capital adequacy ratio (CAR) is estimated to move from 20.1% to 19.3% and Common Equity Tier 1 (CET1) ratio from 19.3% to 18.4% after dividends. Both measures are still substantially higher than the 11.0% minimum regulatory threshold for CET1 and 10.0% for CAR.
ABOUT METROBANK
Metrobank is one of the strongest and well-capitalized banks in the country. The Bank believes that its robust capital position and balance sheet strength will provide ample support as it navigates through these uncertain times. Capital ratios are among the highest in the industry, with total CAR at 20.1% and Common Equity Tier 1 (CET1) ratio at 19.3%. Consolidated assets stood at P2.5 trillion at the end of December 2021, making Metrobank the country's second largest private universal bank.
