Metrobank H1 earnings drop sans one-time gains

Taipan George Ty-led Metropolitan Bank and Trust Co. posted a first-semester net income of P9.1 billion, half the level chalked up in the same period last year when the bank got a big earnings boost from extraordinary treasury earnings and one-time gains from divestment of shares in car and power generation businesses.

The six-month net profits accounted for 54.5 percent of the market’s consensus forecast of P16.7-billion bottom line for Metrobank for the full year.

In terms of core earnings, the performance for the period was marked by double-digit growth in loans and deposits, steady margins and better cost management, the bank disclosed to the Philippine Stock Exchange.

Total operating income for the first half this year reached P36 billion, with 62 percent or P22.4 billion coming from the interest spread business.

Net interest income was up 29 percent year-on-year to P22.28 billion, supported by strong volume take-up.

Consolidated deposits increased by 23 percent year-on-year to end the semester at P1.1 trillion, while loan growth was sustained at 19 percent to reach P647.5 billion.

“Lending activities were driven by the strong demand from the commercial segment, which continues to benefit from the robust economy and investment climate. As a result, net interest margin was maintained at 3.9 percent, the same level as the first quarter,” the bank said.

Non-interest income, on the other hand, was reported at P13.6 billion, sliding from the previous year’s P28.59-billion level.

In the first six months, Metrobank generated P4.4 billion in fee-based income, about 5 percent better than the level in the previous year. However, trading and foreign exchange gains shrunk to only P1.1 billion from the previous year’s P14.3 billion.

Meanwhile, the bank booked miscellaneous income of P8.1 billion which included a property sale and divestments of non-core assets booked in the first quarter.

Metrobank ended the first half with consolidated assets reaching P1.4 trillion and total equity at P138.9 billion. Doris C. Dumlao