Philippines-based Metropolitan Bank & Trust Co. (Metrobank) reported a net profit of P12.3 billion in the second quarter, with interest earnings remaining strong despite higher provisioning and lower trading gains due to market volatility.
The bank's second-quarter income was 2.33% lower than P12.59 billion in the same period last year. This brought its net earnings for the first semester to P24.902 billion, an increase from P24.846 billion a year ago, backed by stable loan growth, margins, and fee income.
Metrobank attributed its performance to a "challenging" business environment for the banking industry. The bank's net interest income for the second quarter rose by 12.13% to P34.38 billion, backed by the continued expansion of its interest-earning assets.
Net interest earnings increased by 12.8% to P67.7 billion for the first half. Gross loans expanded by 12.4%, with corporate and commercial loans posting a 12.8% year-on-year increase to support investment spending and higher working capital needs of customers.
The bank's cost-to-income ratio stood at 52.37%, up from 50% a year prior. Metrobank also hiked its loan loss provisioning to P4.09 billion in the second quarter from P3.27 billion last year.
On the funding side, deposits grew by 10.4% to P2.6 trillion as of June. The bank's assets increased by 12.7% to P3.9 trillion at end-June, while equity rose by 4.9% to P409.7 billion.
Metrobank's capital adequacy ratio was at 14.86%, and the common equity Tier 1 ratio stood at 14.22%. Liquidity coverage ratio came in at 150.1%.
The bank's president emphasized the importance of staying disciplined and focused in a challenging business environment. Metrobank will continue to support its clients while pursuing sustainable growth in an uncertain environment.
