Strong portfolio, investment returns lift LBP income BIR chief stresses benefits for senior citizens, PWDs Asset expansion lifts Metrobank’s income to ₧20.9B

By Cai U. Ordinario @caiordinario

THE expansion of assets allowed the Metropolitan bank & Trust Co. (Metrobank) to book a 34.1-percent increase in its net income in the January to June period in 2023.

In a statement, Metrobank said its net income increased to P20.9 billion. This translated to 12.9 percent return on equity, higher than the 10 percent recorded in the same period last year.

In the second quarter alone, the bank posted a 37.1 percent growth in earnings to P10.4 billion from the same period last year. “Our core businesses continued to grow and benefit from our strong balance sheet,” Metrobank President Fabian S. Dee was quoted in the statement as saying. “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.”

Metrobank’s total consolidated assets stood at P2.9 trillion, maintaining its status as the country’s second largest private universal bank. Total equity reached P329.8 billion

“(The growth in net income was) supported by the bank’s asset expansion, higher margins, and healthy fee income growth as it kept its asset quality stable,” Metrobank said in a statement.

The bank’s net interest income grew 27 percent to P50.6 billion, on the back of a 50-basis point increase in net interest margin to 3.9 percent.

Gross loans of the country’s 4th-largest bank in terms of assets climbed 8.6 percent yearon-year, driven by a 7.2 percent rise in commercial loans and 14.1 percent expansion in consumer loans.

In terms of net credit card receivables, Metrobank said this increased by 28.8 percent while auto loans grew by 17.5 percent, sustaining the growth momentum in the consumer segment.

Meanwhile, total deposits grew by 9.3 percent to P2.3 trillion from a year ago, of which low-cost current and savings accounts accounted for 62.2 percent, according to the lender.

Trading and foreign exchange gains stood at P3.1 billion, while fee income rose by 10.2 percent to P8.1 billion.

Cost to income ratio continued to improve, declining to 51.8 percent in the first semester from 53.8 percent in the same period last year. The solid 19.1 percent growth in revenues outpaced the 14.5 percent jump in operating expenses to P33.7 billion, which was mainly driven by higher transaction related taxes and technology related costs.

With this, Metrobank said its pre-provision operating profit increased by 24.4 percent to P31.8 billion.

Metrobank’s non-performing loans (NPLs) ratio further eased to 1.8 percent in the first six months of 2023 from 1.9 percent in the same period last year, reflecting the bank’s prudence in its lending business.

“NPL cover is at a high of 184.4 percent providing a substantial buffer against any risks to the portfolio,” according to the lender.

The bank’s capital ratios are still among the highest in the industry, with capital adequacy ratio at 17.9 percent and common equity tier-1 ratio at 17.1 percent, all well-above the minimum regulatory requirements of the Bangko Sentral ng Pilipinas.

In addition, liquidity coverage ratio is substantial at 243.4 percent, according to the lender.