Metrobank net income rises by 37.05% in Q2

METROPOLITAN Bank & Trust Co. (Metrobank) saw its net income rise by 37.05% year on year in the second quarter, driven mainly by higher net interest earnings.

The lender’s attributable net income stood at P10.42 billion in the second quarter, up from P7.6 billion in the same period last year, according to its financial statement submitted to the local bourse on Wednesday.

“Our core businesses continued to grow and benefit from our 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,” Metrobank President Fabian S. Dee said in a statement.

The bank’s second-quarter performance brought its attributable net income for the first half to P20.9 billion, up by 34.08% from P15.59 billion in the same period last year.

This translated to a return on average equity of 12.89% and a return on average assets of 1.46%, up from 10.02% and 1.21% a year prior, respectively.

Metrobank’s net interest income went up by 25.31% to P25.71 billion in the second quarter, driven by higher interest earnings on loans and receivables and trading and investment securities that more than offset a 348.36% jump in interest expenses to P11.9 billion.

The bank’s net interest margin stood at 24.2% at end-June, down from 26.29% a year prior.

Meanwhile, other income inched down by 1.12% to P6.81 billion, even amid a slight increase in service charges, fees and commissions, as it saw a lower net gain from trading, securities, and foreign exchange.

Other expenses went up by 15.3% to P16.78 billion.

As a result, the bank’s cost-to-income ratio stood at 51.77% at end-June, down from 53.78% a year prior.

Metrobank’s gross loans climbed by 8.6% amid a 7.2% rise in commercial loans and 14.1% growth in consumer loans. Net credit card receivables grew by 28.8% and auto loans rose by 17.5%.

Its nonperforming loan (NPL) ratio improved to 1.84% as of June from 1.91% a year prior, which the bank said reflected its “prudence in its lending business.”

“NPL cover is at a high of 184.4% providing a substantial buffer against any risks to the portfolio,” Metrobank said.

The bank set aside loan loss provisions amounting to P2.12 billion in the second quarter, up by 19.09% from P1.78 billion in the same period last year.

On the funding side, deposits expanded by 9.3% year on year to P2.3 trillion, with low-cost current and savings accounts making up 62.2% of the total.

Metrobank’s consolidated assets stood at P2.9 trillion at end-June.

Total equity reached P329.84 billion.

Its capital adequacy ratio stood at 17.90% as of June, up from 17.62% a year prior, while its common equity Tier 1 ratio was at 17.06%, also higher than the 16.77% seen last year.

Meanwhile, its liquidity coverage ratio stood at 243.4%.

Metrobank’s shares dropped by 65 centavos or 1.11% to end at P58 apiece on Wednesday. — A.M.C. Sy