Metrobank posts 30% hike in H1 net income

Metropolitan Bank and Trust Co. (Metrobank) has reported a net income of P2.25 billion in the first semester of 2005, up 30 percent from P1.73 billion in the same period last year.

Full year 2004 income reached P3.6 billion.

"This positive bottomline reflects an improvement of over 30 percent despite an increase in provisions for the first six months amounting to P1.66 billion," Metrobank president Antonio S. Abacan Jr. said.

On the back of these improvements are increases in non-interest income, up by 23 percent and net interest income, which grew by four percent.

"The gains were also attributed to reduced operating expenses, which is down by 1.8 percent as of end June," Abacan added.

Total resources went up to P472.8 billion from P462.8 billion registered in the same period last year, for an improvement of P10 billion. Upswings in loans and CASA deposits resulted in increases of 5.7 percent and 8.8 percent, respectively from their year-ago balances.

Capital funds stood at P52.7 billion in end June up by 1.3 percent from P52 billion a year ago, net of the P1.6 billion cash dividends paid during the period.

Meanwhile, Metrobank will initially auction P2.2 billion worth of non-performing loans (NPLs) on July 20.

"This is part of Metrobank’s initiatives to trim down its NPL portfolio and to pave the way for further deals in disposing non-performing assets (NPAs) to improve its loan portfolio," Metrobank senior vice president for Specialized Accounts Management Group Cesar Lugtu said. He added that five foreign investors are expected to participate in the said bidding.

In the first three months of the year, Metrobank reported a net income of P1.018 billion, or a 53-percent improvement from the P665 million recorded in the same period in 2004.

Income from trust operations in that period grew 28.6 percent because of the continued growth in the volume of assets being managed its Trust Banking Group. As of December 2004, this volume has risen significantly to P147 billion in trust funds, from P107 billion in 2003 and P70.9 billion in 2002.

The bank had reported a net income last year of P3.62 billion for a 20-percent growth from the previous year, and resources expaqnded to P460 billion. – TPT