Metro Manila (CNN Philippines, August 3) — Metrobank saw earnings go up during the first semester of 2021 despite the return of quarantine restrictions, it reported Tuesday.
In a disclosure to the local bourse, the Ty family-led bank reported a net income of ₱3.9 billion from April to June. The 29.9% growth came “on the back of strong recovery in fee income and lower cost base,” added one of the country’s largest banks.
This brought Metrobank’s earnings for the first six months of 2021 to ₱11.7 billion, climbing by 28% from the same period last year.
The company reported ₱6.4 billion in fee-based income during the period attributing it to the revival of transaction volumes, along with a 21.2% expansion in its trust income.
In terms of loans, the bank reported a non-performing loan (NPL) ratio of 2.3% as of end-June, down from the 2.4% figure logged the previous quarter. Its restructured loans ratio, meanwhile, remain unchanged at 0.5%.
“Amid this backdrop and supported by its anticipatory provisioning strategy in 2020, the bank managed to reduce provision expenses by 69.1% to ₱7.0 billion,” it said, adding its non-performing loan cover rose to 179% as of end-June compared to end-March’s 166%.
Metrobank also noted the role of recurring fees’ recovery in helping cushion the impact of subdued loan demand and margin pressure. The bank also tallied ₱29.4 billion in operating costs from January to June, slightly down from ₱29.6 billion during the said months in 2020.
It likewise reported a current account and savings account (CASA) ratio of 73.8% for the period, compared to 69% last year. Metrobank said this “helped keep funding costs steady.”
“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,” said Metrobank president Fabian Dee.
Metrobank shares finished at ₱45.20 on Tuesday, up 2.49% from yesterday’s close.
