Metropolitan Bank & Trust Co. (Metrobank) on Wednesday reported net income rising 34.1 percent to P20.9 billion in the first six months this year from a year ago on the back of the bank’s asset expansion, higher margins, and healthy fee income growth helping keep its asset quality stable. This translated to a 12.9 percent return on equity, higher than the 10 percent it reported last year.
In the second quarter alone, the bank posted a 37.1 percent earnings growth to P10.4 billion from the same period last year.
“Our core businesses continued to grow and benefit from our strong balance sheet,” said Metrobank President Fabian S. Dee. “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,” he added.
The bank’s net interest income surged by 27 percent to P50.6 billion, on the back of a 50-basis point increase in net interest margin to 3.9 percent. Gross loans climbed 8.6 percent year-on-year, driven by a 7.2 percent rise in commercial loans and 14.1 percent expansion in consumer loans. Net credit card receivables surged 28.8 percent while auto loans grew 17.5 percent, sustaining the growth momentum in the consumer segment.
Total deposits grew 9.3 percent to P2.3 trillion from a year ago, of which low-cost current and savings accounts (CASA) accounted for 62.2 percent.
Trading and foreign exchange gains stood at P3.1 billion, while fee income rose 10.2 percent to P8.1 billion.
Cost to income ratio continued to improve, declining to 51.8 percent from 53.8 percent last year. The 19.1 percent growth in revenue outpaced the 14.5 percent jump in operating expenses to P33.7 billion, which was mainly driven by higher transaction related taxes and technology related costs.
As a result, pre-provision operating profit increased 24.4 percent to P 31.8 billion.
Metrobank’s non-performing loans (NPLs) ratio further eased to 1.8 percent from 1.9 percent in the same period last year, reflecting the bank’s prudence in its lending business. NPL cover is at a high 184.4 percent providing a substantial buffer against any risks to the portfolio.
Metrobank’s total consolidated assets stood at P2.9 trillion, maintaining its status as the country’s second largest private universal bank. Total equity reached P329.8 billion.
The bank’s capital ratios are still among the highest in the industry, with capital adequacy ratio at 17.9 percent and Common Equity Tier 1 (CET1) ratio at 17.1 percent, all well-above the BSP’s minimum regulatory requirements.
Metrobank’s liquidity coverage ratio is substantial at 243.4 percent.
