BusinessMirror

Metrobank says H1 net income up 28%

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METROPOLIT­AN Bank & Trust co. (Metrobank) reported a net income of P11.7 billion, accelerati­ng its earnings to 28 percent for the first half of 2021. The double-digit growth is a result of its strong recovery in fee income and lower cost base, pushing its second quarter income to surge to 29.9 percent to P3.9 billion.

“With the sustained progress in vaccinatio­n roll-outs across the country, we are optimistic of the recovery of the economy,” Metrobank President Fabian S. Dee was quoted in a statement as saying. “We remain driven to keep our growth momentum.”

According to Dee, the lender’s reserves already cover 179.0 percent of nonperform­ing loans (NPLS).

“Capital ratios are almost double the regulatory minimum and, with abundant liquidity, the bank is in a strong position to endure prolonged risks. We have the capacity and are looking forward to provide funding support to business activities that will help push economic recovery,” he added.

Fee-based income rose by 16.4 percent to P6.4 billion in the first semester supported by the revival of transactio­n volumes, according to the publicly-listed firm. Trust income sustained its healthy 21.2 percent growth as assets under management expanded by 16.7 percent. The recovery in recurring fees helped mitigate the impact of subdued loan demand and margin pressure.

Operating costs were kept under control, even declining slightly to P29.4 billion in the first half of the year driven by sustained efforts to improve operationa­l efficiency.

Metrobank said its portfolio health was stable, with NPL ratio further easing to 2.3 percent from 2.4 percent in March 2021. restructur­ed loans ratio was largely unchanged at 0.5 percent. Amid this backdrop and supported by its anticipato­ry provisioni­ng strategy in 2020, the Bank managed to reduce provision expenses by 69.1 percent to P7.0 billion. NPL cover went up to 179.0 percent from 166.0 percent in the previous quarter.

Growth in low-cost current account and savings accounts (casa) remained healthy at 13.5 percent to P1.3 trillion as clients continued to park their excess liquidity in Metrobank. CASA ratio remained high at 73.8 percent which helped keep funding costs steady.

Metrobank is the country’s second largest private universal bank with consolidat­ed assets of P 2.5 trillion as of end June 2021. Total equity reached P313.2 billion, leading to a formidable capital adequacy ratio of 20.4 percent and common equity Tier-one ratio ratio of 19.5 percent.

 ??  ?? This undated photo courtesy of Metropolit­an Bank & Trust Co. (Metrobank) shows the façade of the bank’s building. The publicly-listed lender reported its net income surged to 28 percent in the first half of the year.
This undated photo courtesy of Metropolit­an Bank & Trust Co. (Metrobank) shows the façade of the bank’s building. The publicly-listed lender reported its net income surged to 28 percent in the first half of the year.

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