METROPOLITAN Bank and Trust Co. (Metrobank) posted a 33% increase in net profit to £ 15.6 billion in the first half of 2022, thanks to the company’s better performance across its portfolio.
It recorded a record increase in earnings during the second quarter, up 95% to £ 7.6 billion. Metrobank attributed the higher net income to faster loan expansion, improved interest margin, robust growth in fee income, stable operating costs and lower provisions in a healthier asset quality environment.
“The continuous improvement of the bank’s performance solidifies our strategy as we enable various clients and companies to accelerate economic activities. This also validates the recent accolades we have received from prestigious publications, naming us the best bank in the country,” said the president by Metrobank Fabian Dee.
“Our focus on meeting the needs of our clients, actively managing risk and promoting efficiency, has driven our solid operating results and will continue to do so in the medium term as the economy expands,” he added.
During the January-June period, Metrobank’s gross lending improved by 9% to £ 1.3 trillion year-over-year, driven by 12% growth in corporate and commercial loans and a 16% increase in gross credit. of credit cards.
Asset quality improved with NPLs down 7%. The ratio of non-performing loans to total loans stood at 1.9% in the first six months of 2022, down from 2.3% a year ago and significantly below the industry benchmark of 3.9% in May, which enabled the bank to reduce loan loss provisions by 46 percent in the first half. Metrobank’s NPL coverage stood at 196%, providing more than enough reserve to protect the bank from market risks.
Total deposits increased by 13% to £ 2.1 trillion. Savings Current Account (CASA) deposits increased 10 percent to £ 1.5 trillion from a year ago, resulting in lower funding costs. Net interest income rose to 3.4%, leading to a 6% increase in net interest income to £ 39.8 billion. Non-interest income increased 8% in the first half, driven by an 18% increase in fees and other non-interest income.
Despite prevailing market volatility, Metrobank managed to record a profit of P3.4 billion in commercial revenue from strong customer-driven revenue streams. Its transaction volumes increased and operating expenses met their targets, remaining stable at £ 29.4 billion, supported by ongoing efforts to improve operational efficiency, resulting in a cost / revenue ratio of 53.8 %, an improvement on the 57.2% recorded in the same period last year. The bank’s cost recovery coupled with stability led to a 16% increase in pre-provisioning profit to £ 25.6 billion.
Metrobank is the second largest private universal bank in the country with consolidated assets of P2.7 trillion and a total net worth of P303.4 billion. The bank’s balance sheet remains solid with the Capital Adequacy Ratio or CAR standing at 17.6% and Common Equity Tier 1 at 16.8%, both well above the central bank’s minimum requirement.