Metrobank nets P9.5B
FILE PHOTO
Ty family-led Metropolitan Bank & Trust Co. (Metrobank) grew net profit in the first six months by 5 percent year-on-year to P9.5 billion, citing strong expansion in earnings from core lending activities.
Total assets also reached a new record high at P2 trillion, cementing its position as one of the largest banks in the country.
“Results from recent quarters demonstrate our ability to deliver quality earnings from our core banking business,” Metrobank senior vice president Jette Gamboa said in a press statement on Monday. “We are staying the course and executing in line with our strategic goals. Our deliberate effort to focus on our customers and continuous improvement in service delivery has positioned us to generate stable recurring income despite the volatility in the financial markets.”
In the first half of the year, the bank’s net interest margin continued to improve at 3.7 percent, one of the highest among peers. This was attributed to the loan book expansion in target segments coupled with the overall increase in asset yields. As a result, net interest income rose by 16 percent to P29.6 billion, and contributed 73 percent of total operating income.
Metrobank’s loan book expanded by 21 percent year-on-year to reach P1.1 trillion. In line with trend seen from earlier quarters, the commercial segment continued to lead the growth at 24 percent year-on-year. The consumer segment also sustained its strong volume growth of 17 percent, driven by the faster growing auto loan segment.
On the other hand, the bank reported a 15-percent increase in low cost deposits, faster than the industry’s 10-percent growth rate as of May 2017. Low-cost deposits now accounted for 61 percent of the total P1.5 trillion deposit base.
For every P1 in deposit generated, the bank turned 77 centavos into earning assets by lending out.
Non-interest income of P11.1 billion was comprised of P5.9 billion in service fees and commissions and income from trust operations, P2.5 billion in net trading and foreign exchange gains, and P2.7 billion in miscellaneous income.
