Metrobank reports upbeat lending in H1, net income down

Metropolitan Bank & Trust Company (Metrobank) saw its net income slightly decrease in the first six months of the year, with expenses offsetting the upbeat growth in its core lending business during the period.

In a briefing with reporters in Makati City on Wednesday, the Ty-led lender said it netted an unaudited consolidated total of P9.1 billion from January to June, given the double-digit earnings in its lending business, growing by 24 percent – commercial loans up 27 percent, and consumer loans up 17 percent.

This performance during the period, however, was a decline from the P9.3 billion it noted in 2015 with stronger contributions from fee-based income and managed costs. 

This comes after the company saw its expenses grow to P21.8 billion from P19.4 billion in 2015 after additional costs due to increased hiring and investments.

“We want to increase accessibility. We have investments in terms of automation and technology,” Metrobank SVP Jette Gamboa told reporters.

Despite this, Metrobank held steady its net interest margin at 3.5 percent, as a result of the “robust growth in low cost deposits as well as loan expansion.”

“From a core business point the management is happy with what we’ve been doing,” Joey Mapa, head of investor relations, said.

“There’s a trend now in increasing in loan growth. Industry-wise, it’s starting to pick up,” he added.

In a separate statement, Metrobank President Fabian S. Dee said the company remains optimistic.

“Overall, we are pleased with our earnings results. Despite the volatility in the global financial markets, local elections and heightened competition, we managed to accelerate our performance in our core business, particularly lending, low cost deposit generation and fee income,” he said.

In the first half of the year, the company opened nine new branches and installed 59 new automated teller machines (ATMs), bringing the total branches to 954, and ATMs to 2,285. —KG, GMA News