Metrobank earnings jump 30%

MANILA, Philippines - Metropolitan Bank & Trust Co., the banking arm of taipan George SK Ty reported a 30 percent jump in core earnings in the first half on the back of double-digit growth in both loans and deposits, stronger contributions from fee based-income, and improved efficiencies.

In a statement, Metrobank said its core earnings reached P9.3 billion while net interest income amounted to P23.9 billion.

“Despite continued competitive pressure and volatility in interest rates, net interest income growth improved in the second quarter as the bank focused on improving its asset and liability mix,” Metrobank said.

 Consolidated deposits increased 12 percent to settle at P1.2 trillion with low-cost checking and savings account  deposits expanding 17 percent  year-on-year.

On the other hand, net loans and receivables grew 14 percent to P740.6 billion as the bank continued to prioritize the expansion of the mid-market as well as small and medium enterprise segments while rationalizing the overall  loan portfolio mix.

 This strategy reflected positively on net interest margins, which improved to 3.6 percent in the first semester.

 Non-interest income amounted to P10.9 billion as earnings from service charges, fees and commissions increased by 11 percent to P5 billion  while profits from treasury-related and trust income surged 45 percent to P2.4 billion.

On the other hand, the bank’s operating expenses were flat at P19.4 billion during the period.

Metrobank ended the first half with an equity base of P189 billion, the highest in the industry.  It also had a total asset base of P1.6 trillion.

 It reported a 20.3 percent Capital Adequacy Ratio  and a 16.3 percent Common Equity Tier 1 Ratio, comfortably above the 10 percent minimum requirement of the Bangko Sentral ng Pilipinas (BSP).

 Asset quality remains better than industry as non-performing loans (NPL) ratio came in at 1.2 percent from the year-ago level of 1.3 percent. The bank reported provisions for credit and impairment losses of P1.9 billion.

 The Ty-led bank raised P32 billion in fresh capital from a stock rights offer completed last April.

Metrobank president Fabian Dee said the bank would use the amount to further expand its core business.

 “After successfully completing our capital raising program, we are poised for further expansion in our core business.  Metrobank will have the flexibility to grow strategically and manage sustainable returns despite the challenges in the domestic and global markets,“ Dee added.

 During the first half, Metrobank opened 18 branches and installed 52 new ATMs, bringing the consolidated total to 938 and 2,159, respectively.