Metrobank posts P9.5B income

Ty family-led Metropolitan Bank & Trust Co. grew its net profit in the first six months by 5 percent year-on-year to P9.5 billion, citing large earnings from core lending activities.

For the second quarter alone, net profit rose by 3.1 percent year-on-year to P3.93 billion, the bank said in a regulatory filing on Monday.

Total assets also reached a new record high of 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. “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 to 3.7 percent, one of the highest among its 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, contributing 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 the trend seen in the previous 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 growing auto loan segment.

The bank also 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.

Non-interest income of P11.1 billion fell by 10.8 percent year-on-year due to slower treasury gains. —DORIS DUMLAO-ABADILLA