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MANILA – Metropolitan Bank and Trust Co. on Thursday said it grew its profit in the first six months of this year by at least a fifth on the back of strong revenues from its lending business and lower operating expenses.
In a statement, Metrobank said its first-half earnings rose 21 percent to P7.4 billion this year from P6.1 billion in the same period last year.
Net interest income, which represents earnings from its lending business, increased to P15.3 billion this year from P14.7 billion last year. The bank grew its loan portfolio by 16 percent, and increased the share of low-cost deposits to 56 percent from 48 percent previously.
The bank also grew its non-interest income – from fee-based businesses, contribution of associates and investments - by 30 percent to P13.8 billion this year from P10.7 billion in 2011.
Operating costs rose 9 percent to P16.3 billion in the first semester, but Metrobank said the second-quarter increase was slower than in the first three months of the year. The bank however provided no second-quarter figures.
Asset quality improved, with the lender’s non-performing loan ratio slipping to 2.2 percent this year from 2.6 percent in 2011.
Provisions for bad loans increased to 109 percent from 95 percent last year.
Metrobank remains solvent with its capital adequacy ratio of 18.5 percent well above the regulatory minimum of 10 percent. Likewise, the bank’s Tier 1 capital ratio of 14.5 percent is above the minimum required.
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