Metrobank reports R9.1-billion net income in first half, up 4.7%

Metropolitan Bank & Trust Co. (Metrobank) posted a 4.7 percent core earnings year-on-year increase in the first six months with an unaudited consolidated net income of R9.1 billion.

Minus one-off gains of R600 million last year, its comparable net income in the same period was up from R8.69 billion versus what was reported of R9.3 billion. The bank’s head of strategic planning Jette Gamboa said that on the basis of recurring gains, their first-half results was higher year-on-year.

Gamboa also highlighted the strength of its balance sheet with net loans and receivables increasing by 24 percent year-on-year to R920.5 billion as of end-June, of which 27 percent came from commercial segment growth.

With the positive first-half results, Gamboa said they are “very optimistic” of lending and financing opportunities going forward particularly on the infrastructure side. “On SME banking – the potential its very high, and on retail – our consumer side is up 17 percent and driven by the auto loan business.”

Gamboa told reporters yesterday that both the commercial and retail businesses will be able to sustain Metrobank’s growth targets plus the bank was able to keep a net interest margin of 3.5 percent for the past eight quarters. “It’s tough to get the yields in this environment (but) we’re very happy we’re able to maintain our margin (NIM).”

Investor relations head Joey Mapa said: “There’s a lot of volatility but margin is still steady.” He also added that overall the trend – at least for their bank – is that loan growth continue to improve its pace.

Head of corporate banking Anthony Ocampo said the bank continue to support conglomerates, ensuring the bank captures foreign direct investment flows and focusing on equity financing of development projects.

“Our growth hinged on us supporting organic corporate growth and focusing on infra and power related investments. These are big items,” he said. The bank has a long line of financing projects in the next months either as sole lender or co-lead. “There are a number of transacions happening but it’s not yet public – these are quite big investments.”

Metrobank’s head of SME Banking Godofredo Cruz said their SME segment’s growth is “phenomenal.” He said, “our growth is really big in terms of loans and CASA. Our NPL is also very low and we are able to maintain that quality. We’re really giving service to those underserved (to cover more grounds).”

Mark Perez, head of retail banking, said their car loans segment is still very strong. “Consumers’ view is still positive… Most of our numbers are very strong on the consumer side.”

For the first semester, Metrobank’s net interest income amounted to R25.6 billion from R23.9 billion the same time in 2015. Its non-interest income stood at R12.5 billion versus last year’s R10.9 billion.

The bank had a higher operating expenses of R21.8 billion during the period from R19.4 billion in 2015 because of additional hirings and improvements in technologies.