Metrobank’s 6-month profit rose to P15.6b

Metropolitan Bank & Trust Co., the second-largest private universal bank, said Tuesday net income in the first half rose 33 percent year on year to P15.6 billion, on sustained improvement of its core businesses.

Net profit surged 95 percent in the second quarter to P7.6 billion year on year

Metrobank president Fabian Dee said the improvement in the bank’s performance “cements our strategy as we enable various customers and businesses as economic activities accelerate. This also validates the recent recognitions we received from prestigious publications, naming us the country’s best bank.”

“Our focus on serving our client needs while actively managing risks and promoting efficiencies has driven our solid operating results, and will continue to do so in the medium term as the economy expands,” Dee said.

Gross loans grew 9 percent year-on-year to P1.3 trillion, led by a 12-percent growth in corporate and commercial lending and 16-percent increase in gross credit card receivables.

Asset quality improved with nonperforming loans declining 7 percent. The ratio of NPLs to total loans stood at 1.9 percent in the first half, down from 2.3 percent a year ago and significantly below the industry’s 3.9 percent NPL ratio in May. The better ratio allowed the bank to further reduce loan-loss provisions by 46 percent in the first half. Metrobank’s NPL cover stood strong at 196 percent, a hefty buffer to protect the bank against market risks.

Total deposits rose 13 percent to P2.1 trillion. CASA (current and savings account) deposits climbed by 10 percent to P1.5 trillion from a year ago, which resulted in lower funding costs. Net interest income increased 6 percent to P39.8 billion as net interest margin recovered to 3.4 percent.

Non-interest income climbed 8 percent in the first half driven by an 18-percent jump in fees and other non-interest earnings. Despite volatile markets, the bank managed to post a P3.4-billion profit from trading income from strong customer driven flows.

Operating expenses remained in control and stayed flat at P29.4 billion, backed by efforts to improve operational efficiency, resulting in a 53.8-percent cost-to-income ratio, an improvement from 57.2 percent posted in the same period last year.

The recovery in the bank’s revenues alongside stable costs led to a 16-percent rise in pre-provisioning profit to P25.6 billion.

Metrobank is the country’s second-largest private universal bank with consolidated assets of P2.7 trillion and a total equity of P303.4 billion. Capital adequacy ratio stood at 17.6 percent and common equity Tier 1 at 16.8 percent, both well-above the central bank’s minimum requirement.

Leading London-based financial publication Euromoney recognized Metrobank as the ‘Best Bank in the Philippines’ at the recently held Euromoney Awards for Excellence 2022.

The bank was also recognized by award-giving bodies such as Asiamoney, The Asian Banker and LinkedIn for being the Best Domestic Bank, the Strongest Bank and the Top Banking Employer in the Philippines, respectively.