METROPOLITAN Bank & Trust Co. (Metrobank) on Friday reported steady earnings in the first half (H1) despite a challenging operating environment that had the bank setting aside more funds to cushion potential credit risks.
The ender posted a net income of P24.9 billion for the January-to-June period, up slightly from the P24.8 billion booked a year earlier and said to have been supported by sustained loan growth and stable margins.“The operating environment remained challenging in the first half, requiring us to stay disciplined and focused,” Metrobank President Fabian Dee said in a statement on Friday.“Our results reflect the strength of Metrobank’s core businesses, the continued trust of our clients and our prudent approach to balancing growth and risk,” he added.Net interest income climbed 12.8 percent to P67.7 billion as gross loans expanded 12.4 percent from a year earlier.Lending to corporate and commercial clients grew 12.8 percent, driven by higher investment spending and working capital requirements, while consumer loans rose 11.1 percent on continued growth in the credit card and housing loan segments.Fee and trust income also increased 9.3 percent to P10.0 billion, helping offset the impact of volatile financial markets on trading income.Total deposits reached P2.6 trillion, up 10.4 percent from a year ago, with low-cost current and savings accounts accounting for 60.5 percent of the deposit base.The bank’s loan-to-deposit ratio edged up to 81.1 percent, providing room for further lending expansion.Metrobank raised provisions by 26.8 percent in the first six months to strengthen its safeguards against potential asset quality pressures amid weaker macroeconomic conditions.Despite the higher provisions, asset quality remained sound, with its nonperforming loan (NPL) ratio at 1.8 percent, well below the industry average of 3.4 percent.Its NPL coverage ratio stood at 133.3 percent, while restructured loans accounted for only 0.3 percent of total loans compared with the industry average of 2.0 percent.Operating expenses increased 10.1 percent to P42.4 billion, mainly due to higher transaction-related taxes and continued investments in technology and digital capabilities, while cost-to-income ratio stood at 52.4 percent.Metrobank reported total consolidated assets of P3.9 trillion as of end-June, up 12.7 percent year on year, while shareholders’ equity rose 4.9 percent to P409.7 billion.The bank said capital levels were also maintained well above regulatory requirements. Capital adequacy was at 14.9 percent, and the common equity tier 1 ratio stood at 14.2 percent, while its liquidity coverage ratio hit 150.1 percent.“We will continue to support our clients while pursuing sustainable growth in an uncertain environment,” Dee said.Metrobank shares slipped P0.80, or 1.20 percent, to close at P65.70 each on Friday amid a 1.10-percent drop for the benchmark Philippine Stock Exchange index.
