Metropolitan Bank & Trust Co. (Metrobank) reported little change in first-half net income as growth in its lending business was tempered by higher provisions and expenses.
Net income for the six months ended June rose to P24.9 billion fromP 24.85 billion a year earlier.
“The operating environment remained challenging in the first half, requiring us to stay disciplined and focused,” Metrobank president Fabian Dee said in a statement. “Our results reflect the strength of Metrobank’s core businesses, the continued trust of our clients, and our prudent approach to balancing growth and risk. We will continue to support our clients while pursuing sustainable growth in an uncertain environment.”
Net interest income climbed 12.8% to P67.7 billion, while net interest margin was steady at 3.7%.
Gross loans grew 12.4% from a year earlier, driven by a 12.8% increase in corporate and commercial lending as businesses expanded investment and working capital spending. Consumer loans rose 11.1%, supported by growth in credit card and mortgage portfolios.
Total deposits increased 10.4% to P2.6 trillion, with low-cost current and savings accounts accounting for 60.5% of the deposit base. The loan-to-deposit ratio edged up to 81.1%.
Fee and trust income rose 9.3% to P10 billion, partly offsetting weaker trading income amid volatile financial markets.
Operating expenses increased 10.1% to P42.4 billion, mainly due to higher transaction-related taxes and continued investment in technology and digital capabilities. The cost-to-income ratio stood at 52.4%.
Metrobank increased loan-loss provisions by 26.8% to P7.46 billion from P5.88 billion a year earlier, maintaining a non-performing loan coverage ratio of 133.3%.
“This should continue to provide sufficient buffer against potential pressures on asset quality due to weaker macro conditions,” the bank said.
Despite the higher provisions, asset quality remained stronger than the industry average. Metrobank’s non-performing loan ratio was 1.8%, compared with the banking industry’s 3.4%, while restructured loans accounted for just 0.3% of total loans versus the industry’s 2%.
Total consolidated assets rose 12.7% to P3.9 trillion while shareholders’ equity increased 4.9% to P409.7 billion. Its capital adequacy ratio stood at 14.9%, with a common equity tier 1 ratio of 14.2%, both above regulatory minimums.
