The bank’s return on equity reached 13.3 percent, up from 12.9 percent in the same period last year, the country’s No. 2 lender said in a statement on Thursday.
Double-digit loan expansion
Metrobank’s gross loans rose by 14.9 percent year-on-year, with commercial loans up 15.2 percent and consumer loans up 13.7 percent.
Net credit card balances went up by 21.4 percent, and auto loans increased by 16.6 percent. The profit margin on loans improved to 4 percent from 3.9 percent, leading to a 14.6 percent rise in net interest income, reaching P58 billion for the first half of 2024.
Higher fee income
Total deposits grew by 7.8 percent to P2.4 trillion by June, with low-cost current and savings accounts making up 58 percent.
Fee income grew by 8.4 percent in the second quarter, driven by the expanding consumer business. Operating costs rose by 8.1 percent to P36.4 billion, with a cost-to-income ratio of 52.3 percent.
Management’s view
“Our strong capital position and robust asset profile continued to support our expanding core businesses despite market challenges. Prospects of easing inflation driven by government efforts could further spur consumer demand,” said Metrobank president Fabian S. Dee.
“We are firmly on track to meet our medium-term growth aspirations as we support various public and private sector initiatives that continue to drive economic growth,” he added.
Risks in check
Metrobank’s bad loan ratio improved to 1.66 percent from 1.84 percent last year, which is much better than the industry average of 3.7 percent last May.
The bank set aside less money for potential loan losses, reducing provisions to P1 billion, but still kept a high safety buffer of 162.7 percent to protect against risks.
Huge asset base
Metrobank’s assets grew by 14.5 percent to P3.3 trillion while equity reached P355.1 billion.
The capital adequacy ratio was 16.7 percent, common equity tier 1 ratio was 15.9 percent, both above requirements. The liquidity coverage ratio was 259.9 percent.
