Metropolitan Bank & Trust Company (Metrobank) is planning to issue 1.5-year peso bonds worth P10 billion with option to upsize, subject to market conditions.
In a disclosure to the Philippine Stock Exchange, the bank said this issuance is under its Philippine Peso Bond and Commercial Paper Program of up to P200 billion, as approved by the Bank's Board of Directors last 15, 2021.
“Proceeds will be used to refinance maturing issuances and diversify the Bank's Philippine Peso funding sources while supporting the Bank's operations,” Metrobank said.
The bank reported that its net income surged 95 percent to P7.6 billion in the second quarter of the year, boosting first half earnings by 33 percent to P15.6 billion year-on-year.
Metrobank said it almost doubled its net income because of its better performance across the board—expansion of its loan portfolio, improving interest margin, robust fee income growth, and stable operating costs.
“The continued improvement in the Bank’s performance cements our strategy as we enable various customers and businesses as economic activities accelerate. This also validates the recent recognitions we received from prestigious publications, naming us the country’s best bank,” said Metrobank President Fabian S. Dee.
He added that, “Our focus on serving our client needs while actively managing risks and promoting efficiencies has driven our solid operating results, and will continue to do so in the medium term as the economy expands.”
Gross loans rose by 9 percent year-on-year to P1.3 trillion, led by a 12 percent growth in corporate and commercial lending and 16 percent increase in gross credit card receivables.
Asset quality improved with non-performing loans (NPLs) declining by 7 percent. The ratio of NPLs to total loans stood at 1.9 percent in the first half, down from the 2.3 percent a year ago and significantly below the industry’s 3.9 percent NPL ratio in May.
This enabled the Bank to further trim down provisions by 46 percent in the first half. Metrobank’s NPL cover stood strong at 196 percent, a hefty buffer to protect the bank against market risks.
Meanwhile, total deposits grew 13 percent to P2.1 trillion. CASA deposits climbed by 10 percent to P1.5 trillion from a year ago, which resulted in lower funding costs.
As net interest margin recovered to 3.4 percent, net interest income increased by 6 percent to P39.8 billion.
Non-interest income went up by 8 percent in the first half driven by an 18 percent jump in fees and other non-interest earnings. Despite volatile markets, the Bank managed to post P3.4 billion profit from trading income from strong customer driven flows.