Metrobank profit grows 16% in first half of 2018

MANILA, Philippines — Listed Metropolitan Bank & Trust Co. (Metrobank) recorded a double-digit 16 percent growth in earnings in the first half after a strong second quarter on the back of the solid performance of its core businesses.

The net income of Metrobank, the country’s second largest bank in terms of assets, amounted to P11 billion in the first half, P1.5 billion higher than the P9.5 billion recorded in the same period last year.

Metrobank president Fabian Dee said the bank’s capital buildup would help sustain the growth momentum.

“We are pleased to see that our efforts continue to bear fruit. Coming on the heels of a successful capital raising at the start of the second quarter, we have started to build good momentum that should allow us to meet our growth targets,” Dee said.

The bank raised P60 billion through a stock rights offering and intends to sell P25 billion worth of long term negotiable certificates of deposits (LTNCDs) to diversify funding sources and raise long term deposits.

For the second quarter alone, the Ty-led bank’s earnings surged by 31 percent to P5.2 billion from 3.9 billion in the same quarter last year.

The robust performance was achieved as the bank continues to strengthen its risk management and operating controls.

“Together with achieving sustainable profitability, we are likewise making good progress in strengthening our risk management and operating controls,” Dee said.

Metrobank’s solid performance was underpinned by the core business, as double-digit growth in loans and sustained current and savings accounts ratio lifted margins even higher, while recurring expense growth was kept at a manageable level.

Its loan book grew 18 percent to P1.3 trillion, while its deposit base inched up 6.7 percent to P1.6 trillion.

The bank’s gross revenue rose 10.7 percent to P45.1 billion in the first half from P40.74 billion in the same period last year.

Net interest income grew by 12.5 percent to P33.3 billion from P29.6 billion as net interest margin improved to 3.77 percent from 3.7 percent.

On the other hand, non-interest income went up by 14 percent to P11.8 billion from P11.1 billion, consisting of P6.8 billion in service fees and commissions and income from trust operations, P1.4 billion in net trading and foreign exchange gains, and P3.6 billion in miscellaneous income.

Metrobank said fee-related revenues continued to benefit from steady customer-driven flows and foreign exchange income, and also boosted by the large corporate deals booked in the early parts of the semester.

Expenses increased 8.8 percent to P25.9 billion from P23.8 billion. Reported provisions for credit and impairment losses stood at P3.5 billion, which is largely attributable to the impact of PFRS-9 adopted at the start of the year.

Metrobank’s consolidated assets stood at P2.2 trillion and equity at P277.6 billion.