Metropolitan Bank & Trust Co (Metrobank) posted a flat first-half net income of P24.9 billion, as higher bad-loan provisions and rising operational costs muted double-digit growth in its core lending business.
The Ty-led lender’s net interest income rose 12.8% to P67.7 billion in the six months ended June, driven by a 12.4% expansion in gross loans and a stable net interest margin of 3.7%.
Earnings were tempered by a 26.8% increase in provisions for credit losses, reflecting a cautious stance amid macroeconomic uncertainty, alongside a 10.1% rise in operating expenses to P42.4 billion, driven by technology investments and transaction taxes.
“The operating environment remained challenging in the first half, requiring us to stay disciplined and focused,” Metrobank president Fabian Dee said in a statement.
Corporate loans grew 12.8%, while consumer lending expanded 11.1%. Total deposits increased 10.4% to P2.6 trillion, with low-cost current and savings account (CASA) deposits accounting for 60.5% of the total. Fee and trust income rose 9.3% to P10.0 billion, partly offsetting softer trading income.
Asset quality remained healthy, with the non-performing loan (NPL) ratio at 1.8%, well below the banking industry’s 3.4% average, while NPL coverage stood at 133.3% despite the higher provisioning.
Total assets rose 12.7% to P3.9 trillion, while capital remained strong, with a common equity tier 1 ratio of 14.2% and a total capital adequacy ratio of 14.9%.
