Metrobank income up 18% to P13B at end-June

Ty family-led Metropolitan Bank & Trust Co. grew net profit in the first semester by 18 percent year-on-year to P13 billion on higher earnings across its lending, fee-based and treasury businesses.

In the second quarter alone, Metrobank’s net profit rose by 22 percent year-on-year to P6.28 billion.

Metrobank’s solid performance for the semester was attributed to the growth in its operating income due to consistent loan growth and margin expansion, higher fee-based income and prudent operational expenditures.

“We are pleased with the results as our initiatives are bearing fruit. We anticipate that the second half will bring even better opportunities as government spending on infrastructure projects continues to accelerate,” Metrobank president Fabian Dee said.

“We will continue to make strategic investments in key areas of people and technology so we can deliver more meaningful banking experiences to all our customers,” he added.

Metrobank expanded its loan book by 6 percent year-on-year to P1.4 trillion in the first semester. Credit demand was broad-based, as both the commercial segment and consumer portfolio posted mid-single digit growth during the period. The commercial segment consists of corporate, middle market and small and medium enterprises, while the consumer portfolio includes mortgage, auto and credit cards.

For the first half, Metrobank’s net interest margin improved by six basis points year-on-year to 3.83 percent. Net interest income grew by 10 percent to P36.5 billion, and accounted for 73 percent of the bank’s total revenues of P50.2 billion.

Six-month noninterest income rose by 16 percent year-on-year to P13.7 billion. This included an 8-percent increase in service fees and commissions to P6.6 billion. Net trading and foreign exchange gains contributed a hefty P3.6 billion compared to only P1.41 billion in the same semester last year. Miscellaneous income stood at P3.5 billion, lower than P4.3 billion in the previous year.

On the funding side, Metrobank’s deposit base stood at P1.6 trillion, of which 61 percent consisted of low-cost deposits.

Meanwhile, operating expense growth decelerated to 7 percent from 10 percent in the first quarter, ending the first half at P27.8 billion. Manpower-related costs accounted for P11.3 billion of the full amount, while the balance was spent on systems and process improvements and additional investments in information technology, marketing and training and development.

Unlocking efficiency gains as revenue growth continues to outpace cost formation, the cost-income ratio has significantly improved to 55.7 percent from 58 percent in the same period last year. This means the bank spent 55.7 centavos for every peso earned.

On asset quality, bad loans stood at 1.5 percent of total loans. To cover its credit risk, the bank set aside P4.6 billion provisions for credit and impairment losses driven by the increase in its loan portfolio.

As of end-June, Metrobank’s consolidated assets stood at P2.3 trillion and equity at P296.5 billion. —DORIS DUMLAO-ABADILLA