Metrobank H1 core earnings jump 30%; net income down

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Metropolitan Bank and Trust Co. (Metrobank), the listed commercial bank of tycoon George Ty, said its core earnings in the first half of the year rose 30 percent on the back of strong growth in both loans and deposits, higher contributions from fee based-income and improved efficiencies with better cost management.

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In its quarterly report filed with the Philippine Stock Exchange, Metrobank said net income attributable to equity holders increased to P9.28 billion in the first half from P9 billion in the same period last year.

The company reported a net income after tax of P10.45 billion, slightly lower than the P10.8 billion recorded in the first half of 2014.

Net interest income — which covers 70 percent of the total operating income – increased to P23.87 billion from P22.35 billion a year ago driven by higher loans and deposits.

Non-interest income dropped 19.8 percent to P10.9 billion from P13.6 billion due to lower miscellaneous income despite improved service fee-based charges and commissions as well as treasury-related and trust income.

Deposits from January to June increased by 12 percent to P1.2 trillion, while loans and receivables grew by 14 percent to P740.6 billion.

Due to the focus on the mid-market and small and medium enterprise (SME) segments while rationalizing overall loan portfolio mix, the bank’s net interest margins improved by 3.6 percent in the first half of 2015.

Metrobank’s service charges, fees and bank commissions went up 11 percent year-on-year to P5 billion while treasury-related and trust income rose by 45 percent to P2.4 billion. Miscellaneous income, on the other hand, was halved to P4.04 billion from P8.06 billion.
Operating expenses were stable and almost the same as last year, ending at P19.4 billion for the period.

The Ty-led bank had total assets of P1.6 trillion as of end-June. It also reported a 20.3-percent capital adequacy ratio (CAR) and a 16.3-percent common equity Tier 1 ratio (CET 1), which more than complies with the 10-percent minimum requirement of the Bangko Sentral ng Pilipinas.

These capital ratios reflect the impact of the P32-billion stock rights offer the bank conducted last April where some 435.37 million common shares were offered, priced at P73.50 each.

“After successfully completing our capital raising program, we are poised for further expansion in our core business. Metrobank will have the flexibility to grow strategically and manage sustainable returns despite the challenges in the domestic and global markets,” said Metrobank President Fabian Dee.

Metrobank is the banking arm of businessman George Ty through conglomerate GT Capital Holdings Inc.

Aside from banking, GT Capital has interests in automotive sector (Toyota Motor Philippines, Toyota Manila Bay Corp. and Toyota Cubao Inc.), automotive leasing and financing (Toyota Financial Services Philippines Corp.), real estate (Federal Land Inc.), power (Global Business Power Corp.), insurance (Philippine AXA Life Insurance Corp.), and non-life insurance (Charter Ping An Insurance Corp.).

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