Metrobank H1 net income up P24.9 billion on loan growth

CEBU, Philippines — Metropolitan Bank & Trust Co. (Metrobank) reported a first-half net income of P24.9 billion, as double-digit loan growth and higher net interest income helped cushion the impact of a challenging operating environment marked by market volatility and macroeconomic uncertainty.

The lender’s net interest income rose 12.8 percent year on year to P67.7 billion, supported by a 12.4 percent increase in gross loans while maintaining a stable net interest margin of 3.7 percent.

“The operating environment remained challenging in the first half, requiring us to stay disciplined and focused,” Metrobank President Fabian Dee said in a statement. “Our results reflect the strength of Metrobank’s core businesses, the continued trust of our clients, and our prudent approach to balancing growth and risk.”

Corporate and commercial lending expanded 12.8 percent, driven by businesses’ investment spending and working capital requirements, while consumer loans increased 11.1 percent, fueled by sustained demand for credit cards and residential mortgages.

Deposits climbed 10.4 percent to P2.6 trillion, with low-cost current and savings accounts accounting for 60.5 percent of the funding base. The bank’s loan-to-deposit ratio rose to 81.1 percent, leaving ample room to support further credit expansion.

Non-interest income remained resilient as fee and trust income increased 9.3 percent to P10 billion, helping offset weaker trading revenues amid volatile financial markets.

Operating expenses grew 10.1 percent to P42.4 billion, reflecting higher transaction-related taxes and continued investments in digital infrastructure. The bank’s cost-to-income ratio stood at 52.4 percent.

Metrobank also strengthened its credit buffers despite maintaining one of the industry’s healthiest loan books.

Provisions increased 26.8 percent, lifting its non-performing loan coverage ratio to 133.3 percent, while its NPL ratio remained at 1.8 percent, well below the banking industry’s 3.4 percent. Restructured loans accounted for only 0.3 percent of total loans, compared with the industry’s 2.0 percent.

The bank ended June with P3.9 trillion in consolidated assets, up 12.7 percent from a year earlier, reinforcing its position as the country’s second-largest private universal bank by assets. Shareholders’ equity rose 4.9 percent to 409.7 billion.

Metrobank also maintained capital and liquidity levels comfortably above regulatory requirements, posting a Capital Adequacy Ratio of 14.9 percent, a Common Equity Tier 1 ratio of 14.2 percent, and a Liquidity Coverage Ratio of 150.1 percent, underscoring its capacity to support lending while navigating an uncertain economic backdrop.