Metropolitan Bank & Trust Company (Metrobank) reported yesterday that it continued to make strides in its core business, reporting unaudited consolidated net income of P9.5 billion in the first six months of the year, up 5% compared to the same period last year.
The bank’s total assets reached a new record high at P2 trillion, cementing the Bank’s leading position in the industry.
With the economy continuing to expand at over 6% GDP growth, Metrobank once again delivered above-industry performance in loans and low-cost deposits, which in turn supported the robust expansion in net interest income. Total revenues hit P40.7 billion while operating expense growth was capped at single-digit levels.
“Results from recent quarters demonstrate our ability to deliver quality earnings from our core banking business” says Metrobank Senior Vice President Jette Gamboa. “We are staying the course and executing in line with our strategic goals. Our deliberate effort to focus on our customers and continuous improvement in service delivery has positioned us to generate stable recurring income despite the volatility in the financial markets” adds Gamboa.
In the first half of the year, the Bank’s net interest margin continued to improve at 3.7%, still the highest among peers. This was attributed to the loan book expansion in target segments coupled with the overall increase in asset yields. As a result, net interest income rose 16% to P29.6 billion, and contributed 73% of total operating income.
Metrobank’s net loans and receivables expanded by 21% year-on-year to reach P1.1 trillion. Following the trend from earlier quarters, the bank’s commercial segment continued to lead the growth, up 24% year-on-year. The consumer segment sustained its strong volume growth of 17%, driven by the faster growing auto loan segment.
On the other hand, the bank registered a 15% increase in low-cost deposits, faster than industry’s 10% CASA growth rate as of May 2017. This improved the CASA ratio to 61% of the total P1.5 trillion deposit base. Metrobank continues to be very liquid with a loan to deposit ratio of 77%, well within peer average.