Metropolitan Bank & Trust Co., the country’s second largest lender, said Wednesday net income grew 34.1 percent in the first half of 2023 to P20.9 billion from a year ago, supported by asset expansion, higher margins and healthy fee income as it kept its asset quality stable.
This translated into a 12.9-percent return on equity, higher than 10 percent recorded in the same period last year.
Metrobank said that in the second quarter, earnings climbed 37.1 percent 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 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.”
Net interest income surged 27 percent 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 went up by 28.8 percent, while auto loans increased 17.5 percent, sustaining the growth momentum in the consumer segment.
Total deposits grew by 9.3 percent to P2.3 trillion from a year ago, of which low-cost current and savings accounts accounted for 62.2 percent.
Trading and foreign exchange gains reached P3.1 billion, while fee income rose 10.2 percent to P8.1 billion.
Cost to income ratio improved to 51.8 percent from 53.8 percent last year. The solid 19.1-percent growth in revenues outpaced the 14.5-percent increase in operating expenses to P33.7 billion, which was driven by higher transaction related taxes and technology related costs.
Pre-provision operating profit rose 24.4 percent to P31.8 billion.
Non-performing loans ratio further eased to 1.8 percent from 1.9 percent in the same period last year, reflecting the bank’s prudence in lending business. NPL cover reached 184.4 percent, providing a substantial buffer against any risks to the portfolio.
Metrobank’s total consolidated assets hit P2.9 trillion, maintaining its status as the country’s second largest private universal bank. Total equity amounted to P329.8 billion.
The bank’s capital ratios are 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, above the BSP’s minimum regulatory requirements. Metrobank’s liquidity coverage ratio is substantial at 243.4 percent.