METROPOLITAN Bank & Trust Co. (Metrobank) saw its net profit rise by 8.44% year on year in the second quarter.
The Ty-led bank’s attributable net income increased to P12.59 billion in the three months ended June from P11.61 billion in the same period last year, according to its financial statement disclosed to the stock exchange on Friday.
This brought its first-semester net earnings to P24.85 billion, climbing by 5.25% year on year from P23.61 billion, “supported by healthy loan growth, recovering margins, robust trading income, and improving cost efficiency,” Metrobank said in a statement.
This translated to a return on equity and a return on assets of 12.8% and 1.42%, respectively, down from 13.27% and 1.48% a year ago.
“Our first-half performance reflects the continuing strength of our core businesses. As we enter the second half of the year, we remain focused on building on our fundamentals and implementing prudent strategies, which will allow us to continue helping our clients grow further as well as achieve our medium-term goals,” Metrobank President Fabian S. Dee said.
The bank’s net interest income rose by 4.74% to P30.66 billion in the second quarter from P29.27 billion in the same period last year.
Broken down, interest income inched up by 1.72% to P45.03 billion as higher interest earnings from loans and receivables were offset by lower interest income from investment securities and deposits.
Interest expense slipped by 4.17% to P14.37 billion, mainly due to decreased interest expense on deposit liabilities, particularly on time deposits due to lower volume.
Net interest margin on average earning assets went down to 3.73% at end-June from 3.99% a year ago.
Metrobank’s other income jumped by 63.53% year on year to P8.91 billion in the second quarter on the back of higher net trading, securities, and foreign exchange gains.
Meanwhile, total operating expenses rose by 4.94% to P19.3 billion from P18.39 billion a year prior, primarily due to higher manpower costs.
The bank’s cost-to-income ratio was at 50% as of June, down from 52.33% a year ago.
“Gross loans grew by 13.2% year on year on healthy performance across portfolios. Institutional loans grew by 12.7% on the back of a sustained rise in corporate capital expenditures. Consumer loans went up by 15.3%, led by gross credit card receivables and auto loans, which climbed by 18.2% and 17.8% year on year, respectively,” Metrobank said.
Despite the expansion in its loan portfolio, the bank’s nonperforming loan (NPL) ratio eased to 1.54% at end-June from 1.66% a year ago.
“The bank booked P5.8 billion in provisions during the semester, keeping NPL cover high at 153.9%, still a strong buffer against any emerging risks,” it said.
On the funding side, total deposits stood at P2.3 trillion at end-June, with P1.5 trillion of this being low-cost current and savings account or CASA deposits.
This resulted in a loans-to-deposits ratio of 79.64% at end-June, up from 67.9% a year prior.
Metrobank’s total assets grew by 6% to P3.48 trillion as of June. Total equity stood at P390.7 billion.
The bank’s capital adequacy ratio stood at 16.3% at end-June, slightly lower than 16.72% a year ago, while its common equity Tier 1 ratio was at 15.57%, also down from 15.87%. Both remained above the minimum regulatory requirements.
Its liquidity ratio declined to 44.65% from 48.12%.
Metrobank shares went down by P1.50 or 2.02% to close at P72.70 each on Friday. — AMCS
