Metrobank’s profit climbed 18% to P13b in 1st semester

Metropolitan Bank & Trust Co. said net income climbed 18 percent in the first half to P13 billion from P11 billion it booked in the same period last year.  

The country’s second-largest lender said net income in the second quarter also rose 22 percent year-on-year.

Metrobank said the solid performance in the six-month period was driven by the double-digit growth in operating income on the back of consistent loan growth and margin expansion, higher fee-based income and prudent operational expenditures.

“We are pleased with the results as our initiatives are bearing fruit.  We anticipate that the second half will bring even better opportunities as government spending on infrastructure projects continues to accelerate,” said Metrobank president Fabian Dee.  

“We will continue to make strategic investments in key areas of people and technology so we can deliver more meaningful banking experiences to all our customers,” Dee said.

Metrobank’s deposit base hit P1.6 trillion as of end-June, with Casa (current account, savings account] ratio stable at 61 percent to total deposits.  This supported the 6-percent increase in net loans and receivables to P1.4 trillion.  

Credit demand was mainly broad-based, as both the commercial segment (comprised of corporate, middle market and SMEs) and consumer portfolio (including mortgage, auto, and credit cards) posted mid-single-digit growth over the comparative period last year.  

Metrobank’s net interest margin improved by 6 basis points year-on-year to 3.83 percent in the first six months.  Net interest income grew 10 percent to P36.5 billion and accounted for 73 percent of the bank’s total revenues of P50.2 billion. 

Rounding off the bank’s growth trajectory was its non-interest income, which rose 16 percent to P13.7 billion. This included an 8-percent increase in service fees and commissions to P6.6 billion, P3.6 billion in net trading and FX gains and P3.5 billion in miscellaneous income. 

Fee-related revenues and trading income continue to benefit from increased customer business in fixed income and foreign exchange.

Meanwhile, operating expense growth decelerated to 7 percent from 10 percent in the first quarter of 2019, ending the first half at P27.8 billion.  

Manpower-related costs accounted for P11.3 billion of the full amount, while the balance was spent on systems and process improvements and the continuous investment in information technology, marketing and training and development.

The cost-income ratio significantly improved to 55.7 percent from 58 percent in the same period last year. 

Asset quality metrics remained healthy, with non-performing loans ratio lower than the previous quarter at 1.5 percent.  To cover its credit risk, the bank made P4.6-billion provisions for credit and impairment losses driven by the increase in its loan portfolio.   

Metrobank’s consolidated assets reached P2.3 trillion and equity, P296.5 billion as of end-June.