Metrobank delivers record 1H income as loan growth gains momentum

Metropolitan Bank & Trust Co. ‘s (Metrobank) net income reached a record P23.6 billion in the first semester of 2024 supported by the bank’s robust asset expansion, stable margins, well-managed cost growth and healthy asset quality. This translated to a 13.3 percent return on equity, above the 12.9 percent recorded in the same period last year.

“Our strong capital position and robust asset profile continued to support our expanding core businesses despite market challenges. Prospects of easing inflation driven by government efforts could further spur consumer demand,” Metrobank president Fabian S. Dee said. 

“We are firmly on track to meet our medium-term growth aspirations as we support various public and private sector initiatives that continue to drive economic growth,” he added. 

Gross loans climbed 14.9 percent year-on-year driven by a 15.2 percent rise in commercial loans and 13.7 percent expansion in consumer loans. Net credit card receivables surged by 21.4 percent, while auto loans grew by 16.6 percent, sustaining the growth momentum in the consumer segment. Net interest margins edged up to 4 percent from 3.9 percent last year. As a result, the bank’s net interest income in the first half of 2024 grew by 14.6 percent to P58 billion. 

Meanwhile, total deposits grew by 7.8 percent to P2.4 trillion as of end-June from a year ago, of which low-cost current and savings accounts (CASA) accounted for 58 percent.

Fee income was stable in the first half, with second quarter growth accelerating to 8.4 percent, supported by a continued expansion in the bank’s consumer business. 

Operating cost growth was contained at 8.1 percent year-on-year to P36.4 billion, as the bank continues to beef up its capabilities to provide better service to clients, with cost to income ratio at 52.3 percent as of end-June.

Metrobank’s non-performing loans (NPLs) ratio improved to 1.66 percent from 1.84 percent last year, well below the industry’s reported 3.7 percent as of May 2024. As a result, the bank trimmed provisions to P1.0 billion in the first semester, but still kept NPL cover high at 162.7 percent to provide a substantial buffer against any emerging risks.

Metrobank’s total consolidated assets expanded by 14.5 percent year-on-year at P3.3 trillion, maintaining its status as the country’s second largest private universal bank. Total equity reached P355.1 billion.

The bank’s capital ratios are still among the highest in the industry, with capital adequacy ratio at 16.7 percent and Common Equity Tier 1 (CET1) ratio at 15.9 percent, all well above the BSP’s minimum regulatory requirements. In addition, Metrobank’s liquidity coverage ratio (LCR) is substantial at 259.9 percent.

Last July 2024, Metrobank won the Best Bank for Corporate Responsibility at the Euromoney Awards for Excellence 2024 for its efforts via Metrobank Foundation Inc., to support health, education, the arts and social initiatives in the Philippines.