Metrobank nets P15.6 billion in first half

CEBU, Philippines —  Universal bank, Metropolitan Bank & Trust Company (Metrobank) recorded a 33 percent increase in net profit to P15.6 billion in the first half of 2022, as earnings surged by 95 percent to P7.6 billion in the second quarter.

The company reported faster loan expansion, improving interest margin, robust fee income growth, stable operating costs, and lower provisions amid healthier asset quality.

“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 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,” he added.

Gross loans rose by nine percent year-on-year to P1.3 trillion, led by a 12 percent growth in corporate and commercial lending and 16 percent increase in gross credit card receivables. Asset quality improved with NPLs (non-performing loans) declining by  seven percent.

The ratio of NPLs to total loans stood at 1.9 percent in the first half, down from the 2.3 percent a year ago and significantly below the industry’s 3.9 percent NPL ratio in May. This enabled the Bank to further trim down provisions by 46% in the first half.  Metrobank’s NPL cover stood strong at 196 percent, a hefty buffer to protect the bank against market risks. 

Meanwhile, total deposits grew 13 percent to P2.1 trillion. CASA (current account and savings accounts) deposits climbed by 10 percent to P1.5 trillion from a year ago, which resulted in lower funding costs. As net interest margin recovered to 3.4 percent net interest income increased by six percent to P39.8 billion.