Metrobank profit rises by 34 percent to P21 billion in H1

MANILA, Philippines — Metropolitan Bank & Trust Co. improved its earnings by 34 percent to almost P21 billion in the first semester as its core businesses further grew following the continuous recovery of the economy.

In a regulatory filing, the country’s second largest private lender in terms of assets attributed its performance to asset expansion, better margins, and healthy fee income growth as it kept its asset quality stable.

In the second quarter alone, Metrobank raked in P10.4 billion in profit, jumping by nearly 40 percent.

Metrobank president Fabian Dee said its core businesses continued to grow and benefit from the bank’s strong balance sheet.

“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,” he said.

Earnings in the first semester translated to a 12.9 percent return on equity, higher than the 10 percent recorded in the same period in 2022.

Metrobank’s net interest income rose by 27 percent to P50.6 billion in January to June, with net interest margin further improving to 3.9 percent.

On the other hand, operating expenses picked up by 14.5 percent to P33.7 billion on higher transaction related taxes and technology related costs.

But this was offset by the higher expansion in revenues at 19 percent, resulting in a lower cost-to-income ratio of 51.8 percent.

The improvement in the bank’s revenues alongside stable costs led to a 24.4-percent rise in pre-provision operating profit to P31.8 billion.

Metrobank’s non-performing loan (NPL) further eased to 1.8 percent amid prudence in its lending business.

The bank also recorded an 8.6-percent increase in total loans, fueled by a 7.2-percent growth in commercial loans and 14.1 percent expansion in commercial lending. Net credit card receivables likewise grew almost 30 percent while auto loans rose by 17.5 percent.

Likewise, total deposits grew by nearly 10 percent to P2.3 trillion, of which current account and savings account deposits accounted for a little over 60 percent.

The bank’s assets stood at P2.9 trillion, while total equity amounted to P329.9 billion.

Its balance sheet remains strong with capital adequacy ratio standing at 17.9 percent and common equity Tier 1 at 17.1 percent, both above the minimum requirement of the central bank.