Metrobank profit up 5% to P9.5 B

MANILA, Philippines - Metropolitan Bank & Trust Co. booked a 4.7 percent increase in net income as it continued to make strides in its core business in the first half of the year.

The country’s second largest bank reported a net profit of P9.49 billion from January to June this year, P434 million higher than the P9.06 billion recorded in the same period last year.

“Results from recent quarters demonstrate our ability to deliver quality earnings from our core banking business,” Metrobank senior vice president Jette Gamboa said.

With the gross domestic product (GDP) continuing to expand at over six percent, Metrobank once again delivered above-industry performance in loans and low-cost deposits, which in turn supported the robust expansion in net interest income.

“Metrobank is very optimistic about the growth prospects of the economy. Our strong capital position and healthy balance sheet allow us to continuously support the business needs of our customers,” he said.

The bank, owned by taipan George Ty, said interest income grew 15.5 percent to P38.49 billion from P33.32 billion due to higher earnings on loans and receivables as well as higher income on deposits cushioning the decline in income on trading and investment securities.

Interest expenses rose 15 percent to P8.87 billion from P7.71 billion due to higher interest expenses on deposit liabilities. The bank’s loan book jumped 21 percent to P1.1 trillion while deposits expanded 15 percent to P1.5 trillion.

Other operating income fell 10.8 percent to P11.12 billion from P12.46 billion due to the decline in net trading and securities and foreign exchange gains while operating expenses went up nine percent to P23.76 billion form P21.8 billion with higher compensation and fringe benefits.

“We are staying the course and executing in line with our strategic goals. Our deliberate effort to focus on our customers and continuous improvement in service delivery has positioned us to generate stable recurring income despite the volatility in the financial markets,” Gamboa added.

Metrobank’s total assets reached a new record high at P2 trillion while total equity stood at P205.6 billion translating to a capital adequacy ratio (CAR) of 16 percent and Common Equity Tier 1 (CET1) ratio at 13.2 percent.

The listed bank has 959 branches and over 2,325 ATMs nationwide, and 32 foreign branches, subsidiaries and representative offices.