MANILA, Philippines — Earnings of Metropolitan Bank & Trust Co. (Metrobank) increased by 18 percent to P13 billion in the first half from P11 billion in the same period last year amid the solid performance of core businesses.
Metrobank president Fabian Dee said the bank’s solid performance for the semester 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,” Dee said.
According to Dee, the listed bank would continue to make strategic investments in key areas of people and technology to deliver more meaningful banking experiences to all its customers.
The country’s second largest lender in terms of resources said its net interest income booked a double-digit growth of 10 percent to P36.5 billion in the first half.
Likewise, non-interest income went up by 16 percent to P13.7 billion due to the eight percent rise in service fees and commissions to P6.6 billion. The bank also booked P3.6 billion in net trading and foreign exchange gains as well as P3.5 billion in miscellaneous income.
Metrobank’s fee-related revenue as well as trading income continue to benefit from increased customer business in fixed income and foreign exchange.
For the first half, Metrobank said its net interest margin improved by six basis points year-on-year to 3.83 percent.
On the other hand, operating expense growth decelerated to seven percent to end the first half with P27.8 billion.
Manpower-related costs reached P11.3 billion, while the balance was spent on systems and process improvements as well as continuous investments in information technology, marketing, and training and development.
The bank’s deposit base stood at P1.6 trillion, while its loan book reached P1.4 trillion amid steady credit demand from both the commercial segment and consumer portfolio.
Metrobank’s non-performing loan ratio stood at 1.5 percent as it set aside P4.6 billion provisions for credit and impairment losses driven by the increase in its loan portfolio.
Its consolidated assets stood at P2.3 trillion and equity at P296.5 billion.