Metrobank keeps income growth momentum in H1

MANILA  -The Ty family’s flagship banking arm Metropolitan Bank & Trust Co. is bullish on business prospects for the rest of the year as earnings in the first semester of 2023 jumped over 34 percent to nearly P21 billion.

Metrobank said net interest income from January to June reached P50.6 billion, up 27 percent over the same period in 2022, as gross loans grew by 8.6 percent, a statement on Wednesday showed.

“As the economy further expands, we see more market opportunities that will keep our upward momentum and sustain our efforts to better serve our customers,” Metrobank president Fabian Dee said in the statement.

Metrobank grew at a similar pace in the second quarter of the year, as net income surged over 37 percent to P10.4 billion. This pushed up the banking giant’s return on equity to 12.9 percent versus 10 percent last year.

“Our core businesses continued to grow and benefit from our strong balance sheet,” said Dee.

Like other lenders, Metrobank benefited from higher lending rates while it strengthened its loan portfolio during the first semester. Net interest margins expanded by 50 basis points to 3.9 percent.

It said loans were driven by commercial debt, up 7.2 percent, and consumer loans, up 14.1 percent. Net credit card receivables also jumped 28.8 percent while auto loans grew by 17.5 percent.

Trading and foreign exchange gains amounted to P3.1 billion while fee income went up by 10.2 percent to P8.1 billion. Deposits also increased 9.3 percent to P2.3 trillion, the bulk of which were low-cost current and savings account deposits.

Metrobank said non-performing loans ratio further eased to 1.8 percent from 1.9 percent while NPL covered reached a high of 184.4 percent to mitigate risks to its portfolio. The bank’s operating expenses grew 14.5 percent to P33.7 billion.

Metroabank said in its quarterly report that full-year capital expenditures were estimated at P3-5 billion. About 70 percent was allocated to technology-related costs.

Meanwhile, its overall cost-to-income dropped to 51.8 percent in the first half of 2023 from 53.8 percent last year.

—Miguel R. Camus INQ