Tycoon George Ty-controlled Metropolitan Bank & Trust Co. (Metrobank) yesterday reported a 2012 consolidated net income of P15.4 billion, up 40 percent year-on-year.

 Metrobank said the group’s total consolidated resources reached P1.04 trillion by end-December from P958.4 billion in 2011, the second domestic universal/commercial bank to have breached the P1-trillion mark in terms of assets size.

 In a statement, the bank said continued net gains resulted to higher return on average equity of 13.4 percent. At the end of 2012, Metrobank reported total equity of P120 billion and total capital adequacy ratio of 16.3 percent and 13.7 percent tier 1 capital ratio.

Metrobank attributed its income growth to a 16 percent operating income increase to P58.7 billion resulting from a five percent growth in net interest income to P30.8 billion while its non-interest revenues rose by 33 percent year-on-year and “driven by steady growth in fee-based revenues, earnings from treasury and investment activities, and miscellaneous income.”

The bank’s interest margin improved to 3.6 percent at the end of 2012 from the previous 3.5 percent which was supported by favorable deposit mix as total low cost deposits accounted for 56 percent of total from 53 percent. The bank’s net interest income accounted for 55.14 percent its total operating income.

Last year, Metrobank’s deposit base increased eight percent to P738.7 billion on the back of a 15 percent growth in net loans and receivables of P525.7 billion, with the consumer and commercial middle market leading the growth, it noted.

 In the statement, the bank said its operating efficiency continued to improve as its cost-to-income ratio went up to 59.7 percent from 62.6 percent previously while pre-provision operating profit increased by 28 percent to P25.4 billion.

As for loan and asset quality, the bank affirmed both levels remains “well under control” with non-performing loans ratio down to 1.8 percent from 2.2 percent the same time in 2011. Loan loss provisioning (credit and impairment losses) amounted to P4.5 billion while NPL coverage has improved to 117 percent from 100 percent.