Metrobank nets P6.1 B in first half

MANILA, Philippines—Local banking giant Metropolitan Bank and Trust Co. booked P6.1 billion in consolidated net profit in the first semester, up by 45 percent from a year ago, on higher earnings from core lending and other financial services.

For the second quarter alone, net profit surged by 83 percent year-on-year to P3 billion, the bank disclosed to the Philippine Stock Exchange on Friday.

This performance boosted the bank’s average return on equity (ROE) to 13 percent from 10.7 percent a year ago.

In terms of nominal peso profits, Metrobank is thus fast catching up with industry leader, Ayala-led Bank of the Philippine Islands, which reported P6.2 billion in net profit (up by 12 percent year-on-year) over the same period.

The banking arm of the Ty family has also grown its balance sheet by 16 percent to P965.4 billion in consolidated resources at end-June, versus Banco de Oro Unibank’s P1.03 trillion in resources as of the same period.

“Metrobank’s strategy of pursuing sustainable growth and efficiency while safeguarding asset quality has continued to augur well for the bank’s overall performance,” the bank said in its disclosure.

Total operating income for the six-month period reached P25.4 billion, driven by a 12 percent year-on-year growth in net interest income to P14.7 billion. This developed as the bank expanded its loan book by 13 percent from a year ago, citing sustained demand coming from the corporate and consumer sectors.

In an earlier report on financial condition, Metrobank said it booked P322.92 billion in net loans and receivables.

Meanwhile, the bank’s deposit base expanded by 21 percent to P709.5 billion from a year ago.

Non-interest income in the first semester was stable at P10.7 billion compared to P10.3 billion a year ago, driven by the 9 percent expansion in service charges, fees and commissions which had mitigated the expected weakness in trading and foreign exchange gains.

Operating expenses grew by 8.7 percent year-on-year to P14.9 billion in the six-month period which was attributed by the bank to higher manpower-related costs. Before provision for potential loan loss, operating profit expanded by 7 percent to P10.5 billion from a year ago.

In terms of asset quality, gross non-performing loans accounted for 2.6 percent of total loans equivalent to around P10.7 billion. The bank had set aside provisions for credit and impairment losses totaling P1.5 billion, bringing its NPL cover to 95 percent.

Total equity as of end-June amounted to P101.1 billion, the highest among its banking peers in the Philippines. Total equity rose by 23 percent from a year ago.

Its total capital adequacy ratio (CAR) stood at 17.2 percent, higher than the 10 percent minimum ratio required by local banking regulators. Counting only tier 1 or core capital, its CAR stood at 13.3 percent or more than double the minimum requirement.

Metrobank has 760 branches, 1,400 automated teller machines and an overseas network of 38 branches, subsidiaries and representative offices. Among its key financial subsidiaries are: First Metro Investment Corp., Philippine Savings Bank, Metrobank Card Corp., and ORIX Metro Leasing and Finance Corp.