Metrobank profit hits record P23.6 billion in H1

MANILA, Philippines — The net income of Ty-led Metropolitan Bank & Trust Co. (Metrobank) jumped by 12.9 percent to P23.6 billion in the first semester from P20.9 billion in the same period last year, marking its highest first half result ever.

The country’s second largest private lender in terms of assets attributed the strong performance to robust asset expansion, stable margins, well-managed cost growth and healthy asset quality.

Return on equity increased to 13.3 percent as of end-June from 12.9 percent a year earlier while return on average assets rose to 1.48 percent from 1.46 percent.

“Our strong capital position and robust asset profile continued to support our expanding core businesses despite market challenges. Prospects of easing inflation, driven by government efforts could further spur consumer demand,” Metrobank president Fabian Dee said.

“We are firmly on track to meet our medium-term growth aspirations as we support various public and private sector initiatives that continue to drive economic growth,” he added.

Metrobank’s net interest income rose by 14.6 percent to P58 billion from January to June compared to the P50.6 billion in the same period last year. Net interest margins edged higher to four percent from 3.9 percent previously.

Other income, on the other hand, fell by 19.4 percent to P12 billion from P14.9 billion as the bank recorded trading losses of P370 million, a reversal of the P3 billion gains a year ago.

Operating expenses increased by 8.1 percent to P36.4 billion as the bank continues to beef up its capabilities to provide better services to its clients, resulting in a 52.3 percent cost-to-income ratio as of end-June.

The bank also booked a 14.9-percent increase in total loans, fueled by a 15.2-percent growth in commercial loans and 13.7-percent expansion in consumer loans. Net credit card receivables surged by 21.4 percent, while auto loans grew by 16.6 percent.

Metrobank’s non-performing loan (NPL) ratio improved to 1.66 percent in the first semester from a year-ago level of 1.84 percent. As a result, the allocation for credit and impairment losses plunged by 77.2 percent to P1.03 billion in the first half from P4.51 billion.

However, the lender still kept its NPL cover high at 162.7 percent to provide a substantial buffer against any emerging risks.