Metropolitan Bank and Trust Co. (Metrobank) reported double-digit growth across its core businesses, even as its net income slid by 1.9 percent in the first six months this year.
The George S.K. Ty-led lender reported unaudited consolidated net income of P9.1 billion, slightly lower than P9.28 billion in the same period last year.
President Fabian Dee said in an official statement the bank was pleased with its earning results, saying it expects recurring income to trend going forward.
“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.
He added Metrobank is more than adequately capitalized and that they are best positioned to take advantage of the country’s growth opportunities not just for now but for the long haul, as well.
The lender’s balance sheet expanded as its net loans and receivables grew by 24 percent year-on-year to P920.5 billion. Its commercial segment rose by 27 percent, anchored by business-expansion plans and the infrastructure spending of local conglomerates. The consumer segment sustained strong volume growth of 17 percent.
Anthony Ocampo, senior vice president for corporate banking, at a news briefing, said the bank will focus on infrastructure and power-related investments.
Metrobank was also seen banking on sustained small and medium enterprise growth in the country and tapping the so-called underserved areas of the archipelago. Jette Gamboa, senior vice president and head of the strategic planning division, said despite SMEs comprising only a small part of the business, its potential is huge.
Godofredo V. Cruz, vice president for the commercial banking, also bared a particularly keen sense of optimism the rest of the year, as the lender endeavors also to tap the agriculture segment.
“I am very bullish on the remaining five months. In fact, harvest is coming next month so I’m expecting a lot of production. Most of the importers will also be ordering their stocks for December, as well,” he said.
Cruz also said the bank is even now processing several financing packages for the franchise of some fast-food chains, convenience stores and similar endeavors.
Metrobank’s net interest margin was steady at 3.5 percent as a result of continued loan expansion and low-cost deposits. It booked P12.5 billion in non-interest income from Treasury-related services and fee income.
Low-cost deposits increased by 21 percent in the first half, surpassing the industry’s 13 percent, fueling the CASA ratio to 61 percent of the total P1.3-trillion deposit base.
Metrobank booked P3.6 billion in trading and FX gains, P5.2 billion in service charges, fees and bank commissions and P3.8 billion in miscellaneous income.
The lender ended the first half with consolidated assets of P1.7 trillion and equity at P198.2 billion. Its total capital adequacy ratio on a Basel 3 remained above the regulatory limit and highest in the industry at 17.8 percent with common equity Tier-1 ratio at 14.6 percent.
Its branch expansion stands at nine as of the first half and 59 ATM units installed, totaling 954 branches and 2,285 ATM units across the country.