earnings reports

Metrobank profits up by 28% to P11.7 billion in H1 2021

Rappler
Metrobank profits up by 28% to P11.7 billion in H1 2021

'OPTIMISTIC.' Metrobank rolls out its vaccination program for employees.

Metrobank's Facebook page

'With the sustained progress in vaccination rollouts across the country, we are optimistic of the recovery of the economy,' says Metrobank president Fabian Dee

The net income of Metropolitan Bank and Trust Company (Metrobank) jumped by 28% to P11.7 billion in the first half of 2021.

Metrobank’s anticipatory loan loss provisioning in 2020 has proven to be sufficient to cover 179% of non-performing loans (NPLs), said its president Fabian Dee. This, in turn, allowed the bank to reduce provisions in 2021.

From January to June, provision for loan losses dove by 69.1% to P7 billion against the P22.8 billion in the same period in 2020.

NPL ratio slightly improved at 2.3% from 2.4% during the first quarter. Restructured loans, meanwhile, are at 0.5% of total loans.

The bank is optimistic about economic recovery, given the government’s vaccination program.

“With the sustained progress in vaccination rollouts across the country, we are optimistic of the recovery of the economy. We remain driven to keep our growth momentum,” Dee said.

Metrobank’s fee-based revenue grew by 16.4% to P6.4 billion in the first half of 2021, while recovery in recurring fees helped offset the impact of lower loan demand and margin pressure.

Total current and savings account deposits grew by 13.5% to P1.3 trillion.

“Capital ratios are almost double the regulatory minimum and with abundant liquidity, the bank is in a strong position to endure prolonged risks,” said Dee.

“We have the capacity and are looking forward to provide funding support to business activities that will help push economic recovery.”

Operating costs, meanwhile, inched down to P29.4 billion from P29.57 billion.

Metrobank is the Philippines’ second largest bank with consolidated assets of P2.5 trillion and equity of P313.2 billion. – Rappler.com