Metropolitan Bank & Trust Co.’s (Metrobank) reported a net income of 34.1% reaching P20.9 billion in the first semester of 2023. The bank attributes this growth to asset expansion, higher margins, and healthy fee income, all while maintaining stable asset quality.

“Our core businesses continued to grow and benefit from our strong balance sheet,” said Fabian Dee, president of Metrobank, in a statement. “As the economy further expands, we see more market opportunities that will keep our upward momentum and sustain our efforts to better serve our customers.”

The net income growth has resulted in a 12.9% return on equity, surpassing the 10% recorded during the same period the previous year. In the second quarter, Metrobank reported a 37.1% growth in earnings, amounting to P10.4 billion compared to the corresponding period last year.

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Loans

The bank’s net interest income also saw a significant boost, rising by 27% to P50.6 billion, driven by a 50-basis point increase in net interest margin to 3.9%. Metrobank experienced an 8.6% year-on-year increase in gross loans, primarily due to a 7.2% rise in commercial loans and a 14.1% expansion in consumer loans. The net credit card receivables surged by 28.8%, while auto loans grew by 17.5%, maintaining the growth momentum in the consumer segment.

Metrobank’s total deposits increased by 9.3% to P2.3 trillion from the previous year, with low-cost Current and Savings Accounts (CASA) accounting for 62.2% of the total.

Trading and foreign exchange gains stood at P3.1 billion, while fee income rose by 10.2% to PHP 8.1 billion.

According to Metrobank, it has been effectively managing its expenses, with the cost-to-income ratio showing improvement, declining to 51.8% from 53.8% last year. The bank’s solid revenue growth of 19.1% outpaced the 14.5% increase in operating expenses, which reached PHP 33.7 billion, mainly driven by higher transaction-related taxes and technology costs.

The pre-provision operating profit witnessed a significant 24.4% increase, reaching PHP 31.8 billion.

Metrobank’s non-performing loans (NPLs) ratio improved to 1.8% from 1.9% in the same period last year, reflecting the bank’s cautious approach to its lending business. The NPL cover stands at an impressive 184.4%, providing a substantial buffer against any risks to the portfolio.