METROPOLITAN Bank & Trust Co. (Metrobank) saw its net profit surge by 94.5% in the second quarter on higher fee-based income, stable operational costs, and lower loan loss provisions.
The bank booked an attributable net income of P7.6 billion in the second quarter, up from the P3.907 billion it posted in the same period last year, its quarterly report disclosed to the local bourse on Tuesday showed.
This brought its first half attributable net profit to P15.586 billion, 33% higher than the P11.687 billion recorded in the same period in 2021.
Metrobank’s first semester performance translated to a return on average common equity of 10.02%, up from 7.33% the year prior, and a return on average assets of 1.21%, better than the 0.95% seen in the first half of 2021.
“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 S. Dee said in a statement.
“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,” Mr. Dee said.
The bank’s net interest income rose by 11.12% to P20.516 billion last quarter from P18.46 billion a year prior.
Interest income went up by 6.79% to P23.171 billion on the back of higher interest earnings on investment securities.
Meanwhile, higher interest expense on deposit liabilities accounted for the 17.9% decrease in interest and finance charges to P2.655 billion.
Non-interest income also went up by 13.31% to P6.885 billion in the second quarter. Fee-based earnings increased by 20.9% to P3.70 billion from P3.06 billion last year on higher transaction volumes, while miscellaneous earnings also grew 10% to P2.04 billion from P1.85 billion.
These offset the 1.7% decline in gains from trading activities to P1.13 billion.
Metrobank’s operating costs stood at P14.55 billion in the second quarter, marginally lower than the P14.67 billion seen a year earlier.
Total provisions for credit and impairment losses amounted to P1.78 billion for the quarter, down 46% from the P4.52 billion seen in the same period last year.
The bank’s gross loans rose by 9% year on year to P1.3 trillion, which it said was “led by a 12% growth in corporate and commercial lending and 16% increase in gross credit card receivables.”
“Asset quality improved with NPLs (nonperforming loans) declining by 7%,” Metrobank added.
Its bad loan ratio stood at 1.9% in the first half, down from 2.3% a year ago.
On the funding side, total deposits grew by 13% to P2.1 trillion. The bank’s low-cost current and savings accounts rose by 10% to P1.5 trillion as of June, accounting for 73.8% of the total.
The lender’s capital adequacy ratio rose stood at 17.62% as of June, down from 20.36% a year prior, while its common equity Tier 1 ratio was at 16.77%, also lower than the 19.49% seen last year. Still, both remained above the central bank’s required minimum.
Metrobank is the country’s second-largest private universal lender with consolidated assets of P2.7 trillion and total equity of P303.4 billion.
The bank’s shares rose by P1.10 or 2.3% to P48.90 apiece on Tuesday. — K.B. Ta-asan