Metrobank net income drops by half in 2020 as provisions for bad loans spike

ABS-CBN News

Posted at Feb 17 2021 06:59 PM

A Metrobank branch. ABS-CBN News/File

MANILA - Metropolitan Bank & Trust Co (Metrobank) said on Wednesday its net income in 2020 reached P13.8 billion, which was more than 50 percent lower than the P28.1 billion it booked in 2019.

The bank said it booked P40.8 billion in provisions for bad loans, which is four times more than the P10.1 billion booked in 2019.

Metrobank said non-performing loans (NPL) have remained manageable despite the bank's NPL ratio rising to 2.42 percent from 1.30 percent last year. 

Metrobank President Fabian Dee said that the company's core business "remains solid" despite challenges brought on by the pandemic.

Net interest income rose 11.8 percent on strong deposits, Metrobank said, as people preserved cash during the pandemic. 

Non-interest income meanwhile grew 20 percent on the back of trading and foreign exchange gains.

President Rodrigo Duterte recently signed into law the Financial Institutions Strategic Transfer (FIST) Act to help banks cushion risks from the build-up of bad loans due to the COVID-19 crisis.

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