Metropolitan Bank and Trust Co. (Metrobank) has reported a substantial increase in net income for the first half of 2023, with a growth of 34.1 percent, totaling P20.9 billion compared to P15.6 billion in the same period last year. This impressive growth is attributed to the bank’s asset expansion, higher margins, and a significant boost in fee income. Additionally, Metrobank’s solid performance has maintained stable asset quality, resulting in a 12.9-percent return on equity, surpassing the 10 percent figure from the previous year.
President of Metrobank, Fabian Dee, noted that the bank’s core businesses have continued to expand, benefiting from a strong balance sheet. He emphasized that as the economy further grows, the bank anticipates more opportunities in the market to sustain its upward momentum and enhance customer service.
The bank’s net interest income has risen by 27 percent to P50.6 billion from P39.8 billion, driven by a 50-basis point increase in net interest margin, reaching 3.9 percent. The growth in gross loans, up by 8.6 percent year-on-year, was fueled by a 7.2 percent increase in commercial loans and a notable 14.1 percent expansion in consumer loans.
Notably, net credit card receivables experienced a growth of 28.8 percent, and auto loans increased by 17.5 percent, contributing to the sustained growth momentum in the consumer segment. Metrobank’s total deposits also saw a rise of 9.3 percent, totaling P2.3 trillion, with low-cost current and savings accounts accounting for 62.2 percent of this figure.
Furthermore, trading and foreign exchange gains amounted to P3.1 billion, while fee income saw a notable growth of 10.2 percent, reaching P8.1 billion. The bank has also managed to improve its cost-to-income ratio, reducing it from 53.8 percent to 51.8 percent compared to the previous year.
The nonperforming loans (NPL) ratio further improved, declining to 1.8 percent from 1.9 percent, with NPL cover increasing to an impressive 184.4 percent.
Metrobank’s total consolidated assets currently stand at P2.9 trillion, and its total equity has reached P329.8 billion. The bank maintains high capital ratios, with a capital adequacy ratio of 17.9 percent and a Common Equity Tier 1 ratio of 17.1 percent, both well above the regulatory requirements set by the Bangko Sentral ng Pilipinas. Additionally, Metrobank’s liquidity coverage ratio remains strong at 243.4 percent.
