Ty-led Metropolitan Bank & Trust Co. (Metrobank) announced a net income of P23.6 billion for the first semester of 2024. The Bank attributed this to asset expansion, stable margins, controlled cost growth, and healthy asset quality.
Metrobank’s return on equity now stands at 13.3%, compared to 12.9% in the same period last year.
“Our strong capital position and robust asset profile supported our expanding core businesses despite market challenges,” said Fabian Dee, president of Metrobank. “Prospects of easing inflation driven by government efforts could further spur consumer demand. We are firmly on track to meet our medium-term growth aspirations as we support various public and private sector initiatives that continue to drive economic growth.”
Metrobank’s gross loans increased by 14.9% year-on-year, driven by a 15.2% rise in commercial loans and a 13.7% expansion in consumer loans. Net credit card receivables rose by 21.4%, while auto loans grew by 16.6%, sustaining growth in the consumer segment. Net interest margins edged up to 4.0% from 3.9% last year. The bank’s net interest income in the first half of 2024 grew by 14.6% to P58 billion.
Deposits
Total deposits grew 7.8% to P2.4 trillion as of June from a year ago, with low-cost Current and Savings Accounts (Casa) accounting for 58.0% of the total. Fee income was stable in the first half, with second-quarter growth accelerating to 8.4%, supported by the continued expansion of the bank’s consumer business.
Operating cost growth was contained at 8.1% year-on-year, amounting to P36.4 billion while the cost-to-income ratio stood at 52.3% as of end-June.
Loans
Metrobank’s non-performing loans (NPLs) ratio improved to 1.66% from 1.84% last year, below the industry’s reported 3.7% as of May 2024. As a result, the bank reduced provisions to P1 billion in the first semester while maintaining a high NPL cover of 162.7% to provide a buffer against any emerging risks.
The bank’s total consolidated assets expanded by 14.5% year-on-year, reaching P3.3 trillion, maintaining its status as the country’s second-largest private universal bank. Total equity stood at P355.1 billion.
Metrobank’s capital ratios are among the highest in the industry, with a capital adequacy ratio at 16.7% and a Common Equity Tier 1 (CET1) ratio at 15.9%, both above the Bangko Sentral ng Pilipinas’ (BSP) minimum regulatory requirements. Metrobank’s Liquidity Coverage Ratio (LCR) is at 259.9%.