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METROPOLITAN Bank and Trust Co. (Metrobank) reported a net profit of 5.2 billion pesos for the second quarter of 2018, a robust growth of 31% over the same period of the year previous (3.9 billion pesos). Net income for the first half of the year rose to 11.0 billion pula, up 16% year-on-year.
Metrobank's strong performance was supported by the core business, with double-digit growth in credit and strong results. the ratio further increased margins, while the growth in recurring expenses was maintained at a manageable level.
"We are pleased to see that our efforts continue to pay off, and with a successful capital raise early in the second quarter, we have begun to develop a dynamic that should enable us to achieve our growth objectives, "said Metrobank President Fabian S. Dee. "Along with sustainable profitability, we are also making progress in strengthening our risk management and operational controls," adds Dee.
The growth rate of business loans was reached percent year-over-year at 1.3 trillion pound. The commercial segment led the growth to 21%, driven by the strong performance of major business accounts, followed by medium and small businesses. On the financing side, total deposits increased to £ 1.6 trillion by the end of the first half and the Bank's CASA ratio was maintained at 62%.
The net interest margin for the period was 3.77%, up five basis points from the previous year. On a quarterly basis, there was a significant improvement of 14 basis points from the NIMs to 3.89% in the second quarter. Net interest income amounted to 33.3 billion pesos, accounting for 74% of the Bank 's total turnover of 45.1 billion pesos.
Meanwhile, non-interest income increased by 14% to 11.8 billion pesos and commissions and trust income increased 16%, net trading and foreign exchange gains were 1%. , 4 billion pesos and miscellaneous income of 3.6 billion pesos. Fee-based revenues continue to benefit from strong customer flows and foreign exchange revenues, and also driven by the large deals that were completed early in the six-month period.
Operating expenses, excluding taxes and licenses, increased by 10% to 21.7 billion pesos. Manpower costs increased by 11 percent to 10.5 billion pesos, while the balance was spent on the bank's ongoing efforts to improve systems and streamline processes. Taxes and licenses were declared at 4.2 billion pesos, including the new tax requirements under the TRAIN Act.
Asset quality measures remained healthy and better than the industry average. The ratio of non-performing loans remained stable at 1.1% quarter-on-quarter. For the first half, the overall cost of credit was well respected by the company. The Bank recorded provisions for credit losses and impairment losses of P3.5 billion, mainly attributable to the impact of the PSSR-9 adopted early in the year. In June, Metrobank's consolidated assets amounted to P2 200 billion and shareholders' equity to 277.6 billion pesos.
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