Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, said net income in the first half climbed 16 percent to P11 billion from a year ago, buoyed by the sustained strength of core businesses.
Metrobank said in a statement Thursday net income in the second quarter jumped 31 percent to P5.2 billion from P3.9 billion a year ago.
Metrobank president Fabian Dee said the solid performance was driven by the core business, as the double-digit growth in loans and sustained Casa (current and savings account) ratio lifted margins, while recurring expense growth was kept at a manageable level.
“We are pleased to see that our efforts continue to bear fruit. Coming from the heels of a successful capital raising at the start of the second quarter, we have started to build good momentum that should allow us to meet our growth targets,” Dee said.
“Together with achieving sustainable profitability, we are likewise making good progress in strengthening our risk management and operating controls,” he said.
The company said its loan growth guidance of high-teens was met, as the total portfolio expanded 18 percent year-on-year to P1.3 trillion. The commercial segment led the growth at 21 percent, driven by the strong performance of top corporate accounts followed by middle market and SMEs.
The consumer portfolio maintained its mid-teens growth.
Total deposits increased to P1.6 trillion at the end of the first half, and the bank’s Casa ratio was maintained at 62 percent.
Net interest margin for the period was 3.77 percent, or 5 basis points higher than the comparative figure last year. Metrobank said on a quarter-on-quarter basis, there was a 14-basis-point improvement in the net interest margin to 3.89 percent in the second quarter.
Net interest income reached P33.3 billion, which accounted for 74 percent of the bank’s total revenue of P45.1 billion.
Meanwhile, non-interest income rose 14 percent to P11.8 billion, comprised of P6.8 billion in service fees and commissions and income from trust operations which was up 16 percent, P1.4 billion in net trading and FX gains, and P3.6 billion in miscellaneous income.
Operating expenses, excluding taxes and licenses, increased 10 percent to P21.7 billion. Manpower-related costs grew 11 percent to P10.5 billion, while the balance was spent for the bank’s continuous efforts to improve its systems and streamline processes.
Taxes and licenses were reported at P4.2 billion, inclusive of new tax-related requirements under the Tax Reform for Acceleration and Inclusion law.
Asset quality metrics remained healthy and better than the industry average. Non-performing loans ratio stayed at 1.1 percent.