Metrobank posts P13B net income in H1, up 18%

Ty-led Metropolitan Bank and Trust Co. posted a net income of P13 billion in the first six months of 2019, up 18% from P11 billion a year earlier driven by strong contributions across its businesses.

In a regulatory filing submitted by Metrobank vice president Ildemarc Bautista on Friday, the lender said its solid performance in the first half was driven by double-digit growth in operating income amid consistent loan growth and margin expansion, higher fee-based income, and prudent operational expenditures.

"We are pleased with the results as our initiatives are bearing fruit.  We anticipate that the second half will bring even better opportunities as government spending on infrastructure projects continues to accelerate,” Metrobank president Fabian Dee said.

"We will continue to make strategic investments in key areas of people and technology so we can deliver more meaningful banking experiences to all our customers.” Dee added.

Metrobank’s deposit base amounted to P1.6 trillion, with CASA (current account, savings account) ratio at 61% to total deposits.

"This supported the 6% growth in net loans and receivables to P1.4 trillion," the bank said.

Credit demand was mainly broad-based, as both the commercial segment - comprised of corporate, middle market and SMEs - and consumer portfolio - including mortgage, auto, and credit cards - posted mid-single digit growth.
Net interest margin grew by 6 basis points to 3.83%.

Net interest income rose 10% to P36.5 billion, and accounted for 73% of the bank’s total revenues of P50.2 billion.
Non-interest income stood at P13.7 billion, up 16% year-on-year.

This is comprised of an 8% increase in service fees and commissions to P6.6 billion, P3.6 billion in net trading and foreign exchange gains, and P3.5 billion in miscellaneous income.

Operating expense growth declined 7% to P27.8 billion.

"Manpower-related costs accounted for P11.3 billion of the full amount, while the balance was spent on systems and process improvements, as well as continuous investments in information technology, marketing, and training and development," Metrobank said.  

The bank's consolidated assets totaled P2.3 trillion and equity at P296.5 billion. —KBK, GMA News