Metrobank’s first semester profit up 33%

Ty family-led Metropolitan Bank & Trust Co. (Metrobank) grew its first semester net profit by 33 percent to P15.6 billion on the back of faster loan expansion, improving interest margin and robust fee income growth. Stable operating costs and lower provisions amid healthier asset quality likewise boosted six-month performance versus the year-ago level, Metrobank said in a regulatory filing on Tuesday. The bank’s loan book rose by 9 percent to P1.3 trillion, led by a 12 percent growth in corporate and commercial lending and a 16-percent increase in gross credit card receivables. The ratio of bad loans to total portfolio eased to 1.9 percent at end-June from 2.3 percent a year ago, significantly below the industry’s 3.9 percent non-performing loan ratio in May. Improved asset quality enabled the bank to further slash provisions by 46 percent in the first half. For every P1 of bad loan, the bank has set aside P1.96 in loan loss provisions — seen as much larger buffer against market risks. “The continued improvement in the bank’s performance cements our strategy as we enable various customers and businesses as economic activities accelerate. This also validates the recent recognitions we received from prestigious publications, naming us the country’s best bank,” said Metrobank president Fabian Dee said in a press statement.