Metropolitan Bank & Trust Company (Metrobank) reported unaudited consolidated net income of P9.1 billion for the first six months of 2014. The performance for the period was marked by double-digit growth in loans and deposits, steady margins, and better cost management.
Total operating income for the first half this year reached P36.0 billion, with 62% or P22.4 billion from the interest spread business. Net interest income was up 29% year-on- year supported by strong volume take up. Consolidated deposits increased 23% year-on-year to reach P1.1 trillion, while loan growth was sustained at 19% to close the period at P647.5 billion. Lending activities were driven by the strong demand from the commercial segment, which continues to benefit from the robust economy and investment climate. As a result, net interest margin was maintained at 3.9%, the same level as the first quarter.
Non-interest income, on the other hand, was reported at P13.6 billion. This came from P4.4 billion in fee-based income, trading and forex gains of P1.1 billion, and miscellaneous income of P8.1 billion which included a property sale and divestments of non-core assets booked in the first quarter.
Headline operating expenses for the period was reported at P19.8 billion. On a recurring basis, this represents a slower-than-expected growth of 6% compared to the same period last year. Meanwhile, provisions for credit and impairment losses was lower by 30% year-on-year at P1.9 billion.
Asset quality remains well under control as non-performing loans (NPL) ratio further improved to 1.3% from 1.8% as of the same period last year. NPL coverage increased to 159.8% from 125.3% previously.
In its effort to continuously improve coverage and make banking convenient for clients,Metrobank opened 16 branches and 52 ATMs this year to bring its consolidated total to 872 and 1,988, respectively. Metrobank’s branch network remains the largest in the domestic banking industry.
Metrobank ended the first half with consolidated assets reaching P1.4 trillion, and total equity at P138.9 billion. Basel III capital adequacy ratio (CAR) remained well above the regulatory limit at 15.4% with core equity tier 1 (CET1) at 12.1%.