Metrobank net profit climbs 28% to P11.7 B in first half – Manila Bulletin
Metropolitan Bank & Trust Co. (Metrobank) reported a 28% increase in net profit to P11.7 billion for the first half of 2021. Profit growth accelerated to 29.9% to P3.9 billion in Q2 2021 thanks to a strong recovery in fees and a lower cost base, while last year’s proactive provisioning and stable asset quality enabled the Bank to reduce provisions.
“With continued progress in the rollout of immunization across the country, we are optimistic that the economy is recovering. We remain committed to maintaining our growth momentum, ”said Fabian S. Dee, President of Metrobank. “Our reserves already cover 179.0% of non-performing loans (NPL).
Capital ratios are almost double the regulatory minimum and with abundant liquidity, the Bank is well positioned to face protracted risks. We have the capacity and look forward to providing financial support for business activities that will help drive economic recovery, ”adds Dee.
Fee revenue increased 16.4% to 6.4 billion pesos in the first half, supported by recovering transaction volumes. Trust revenues maintained their solid growth of 21.2% while assets under management increased 16.7%. The recovery in recurring commissions helped mitigate the impact of weak credit demand and pressure on margins.
Operating costs were contained, even falling slightly to 29.4 billion pesos in the first half of the year thanks to sustained efforts to improve operational efficiency.
The health of Metrobank’s portfolio remained stable, with the NPL ratio falling further to 2.3% from 2.4% in March 2021. The restructured loan ratio was virtually unchanged at 0.5%. In this context and supported by its strategy of early provisioning in 2020, the Bank succeeded in reducing provisioning costs by 69.1% to 7.0 billion pesos. NPL coverage increased to 179.0% from 166.0% in the previous quarter.
Growth in current accounts and low-cost savings accounts (CASA) remained strong at 13.5% at 1.3 trillion pesos as customers continued to park their excess cash in Metrobank. The CASA ratio remained high at 73.8%, which helped keep funding costs stable.
Metrobank is the second largest private universal bank in the country with consolidated assets of 2.5 trillion pesos at the end of June 2021. Total equity reached 313.2 billion pesos, leading to a formidable capital adequacy ratio. equity (CAR) of 20.4% and a senior equity ratio (CET1 Ratio) of 19.5%.
SUBSCRIBE TO THE DAILY NEWSLETTER
CLICK HERE TO JOIN