Metropolitan Bank & Trust Company (Metrobank) recorded a 33 percent increase in net profit to P15.6 billion in the first half of 2022, as earnings surged by 95 percent to P7.6 billion in the second quarter.
Performance was better across the board– faster loan expansion, improving interest margin, robust fee income growth, stable operating costs, and lower provisions amid healthier asset quality.
“The continued improvement in the bank’s performance cements our strategy as we enable various customers and businesses as economic activities accelerate. This also validates the recent recognitions we received from prestigious publications, naming us the country’s best bank,” said Metrobank President Fabian Dee.
“Our focus on serving our client needs while actively managing risks and promoting efficiencies has driven our solid operating results, and will continue to do so in the medium term as the economy expands,” he added.
Gross loans rose by 9 percent year-on-year to P1.3 trillion, led by a 12 percent growth in corporate and commercial lending and 16 percent increase in gross credit card receivables.
Asset quality improved with NPLs declining by 7 percent. The ratio of NPLs to total loans stood at 1.9 percent in the first half, down from the 2.3 percent a year ago and significantly below the industry’s 3.9 percent NPL ratio in May. This enabled the bank to further trim down provisions by 46 percent in the first half. Metrobank’s NPL cover stood strong at 196 percent, a hefty buffer to protect the bank against market risks.
Meanwhile, total deposits grew 13 percent to P2.1 trillion. CASA deposits climbed by 10 percent to P1.5 trillion from a year ago, which resulted in lower funding costs. As net interest margin recovered to 3.4 percent, net interest income increased by 6 percent to P39.8 billion.
Non-interest income went up by 8 percent in the first half driven by an 18 percent jump in fees and other non-interest earnings. Despite volatile markets, the Bank managed to post P3.4 billion profit from trading income from strong customer driven flows.
Amid a rise in the bank’s transaction volumes, operating expenses remained in control and stayed flat at P29.4 billion, backed by on-going efforts to improve operational efficiency, resulting in 53.8 percent cost-to-income ratio, an improvement from the 57.2 percent posted in the same period last year.
The recovery in the bank’s revenues alongside stable costs led to a 16 percent rise in pre-provisioning profit to P25.6 billion.
Metrobank is the country’s second largest private universal bank with consolidated assets of P2.7 trillion and total equity of P303.4 billion. The bank’s balance sheet remains strong with capital adequacy ratio (CAR) standing at 17.6 percent and common equity Tier 1 (CET 1) at 16.8 percent, both well-above the central bank’s minimum requirement.
