Metrobank second quarter revenues increase by 11.4%

METROPOLITAN BANK & TRUST CO. (Metrobank) saw its net profit rise 11.44% in the second quarter as it posted higher net interest income amid an expanded loan portfolio and higher interest rates.

The Ty-led bank’s attributable net income stood at P11.61 billion in the April to June period, compared to P10.42 billion in the same period last year, according to its financial statement released to the stock exchange on Thursday.

This brought first-half net profit to a record P23.61 billion, up 12.95% year-on-year from P20.898 billion.

Metrobank’s first-half performance was driven by “robust asset expansion, stable margins, well-managed cost growth and healthy asset quality,” the report said.

This translated into a return on average equity of 13.27%, compared to 12.89% a year earlier. The return on average assets also rose from 1.46% to 1.48%.

“Our strong capital position and robust asset profile continued to support our growing core businesses despite market challenges. The prospects of easing inflation, driven by government efforts, could further boost consumer demand,” said Metrobank President Fabian S. Dee.

“We are FWe are clearly on track to meet our medium-term growth ambitions as we support several public and private sector initiatives that continue to drive economic growth,” he added.

Metrobank’s net interest income rose 13.87% to P29.27 billion in the second quarter, compared to P25.71 billion in the same period last year.

The increase was due to a 17.7% growth in interest income amid higher income from loans and advances and from investment securities, which partially offset a 25.99% increase in interest and corporate bonds. Ffinancing costs.

The bank’s net interest margin stood at 3.99% at the end of June, slightly higher than the 3.93% a year earlier.

Meanwhile, other operating income fell 20.01% to P5.45 billion in the second quarter from P6.81 billion a year ago, due to lower net trading, securities and foreign exchange gains and despite a slight increase in commissions and miscellaneous income.

Metrobank’s operating expenses rose 9.61% year-on-year to P18.39 billion, partly due to higher manpower and transaction-related costs.

The cost-income ratio at the end of June was 52.3%.

The bank’s gross loans rose 14.9% year-over-year at the end of June, driven by a 15.2% increase in commercial loans and a 13.7% increase in consumer loans.

“Net credit card receivables rose 21.4%, while auto loans grew 16.6%, supporting growth momentum in the consumer segment,” the report said.

Even as Metrobank expanded its loan portfolio, Metrobank’s NPL ratio improved to 1.66% at the end of June, compared to 1.84% a year earlier, while NPL coverage stood at 162.7% “to provide a substantial cushion against emerging risks. ”

Provisions for credit and impairment losses stood at P472 million in the second quarter, down 77.68% from the P2.12 billion set aside in the same period last year.

On the financing side, total deposits rose 7.8% year-on-year to 2.4 trillion euros as of June, with low-cost checking and savings accounts or CASA deposits accounting for 58% of the total.

This resulted in a loan-to-deposit ratio of 67.90%, compared to 63.72% a year ago.

Metrobank’s consolidated assets rose 14.5% year-on-year to P3.3 trillion as of June.

Total equity amounted to P355.09 billion.

The solvency ratio fell to 16.72% in June from 17.9% a year earlier. The common equity Tier 1 ratio also fell from 17.06% to 15.87%. Yet both remained well above the minimum levels required by the central bank.

Metrobank’s liquidity coverage ratio was a “substantial” 259.9%.

The shares fell 70 centavos or 1.02% to close at P68 each on Thursday. — AMCS