METROPOLITAN Bank & Trust Co. (Metrobank) is bullish on its earnings for this year after it booked a record net income in the first half and amid a robust economy, an official said.

“We just did our results and it’s a record result for our first half… We’re very optimistic for the rest of the year,” Metrobank Senior Vice-President and Chief Marketing Officer Hierbert “Digs” A. Dimagiba told reporters on the sidelines of an event on Friday.

“Look at our first half and look at how the economy is going… If the economy continues to thrive, businesses continue to thrive. It’s going to be great, not just for Metrobank, but I think for the whole country,” Mr. Dimagiba said.

Metrobank saw its net income rise by 11.44% in the second quarter as it booked higher net interest earnings amid an expanded loan book and elevated rates, it reported earlier this month.

The lender’s attributable net income stood at P11.61 billion in the April-to-June period, up from P10.42 billion in the same period last year, according to its financial statement disclosed to the stock exchange on Thursday.

This brought Metrobank’s net profit for the first semester to a record P23.61 billion, rising by 12.95% year on year from P20.898 billion, driven by “robust asset expansion, stable margins, well-managed cost growth and healthy asset quality,” it said.

Mr. Dimagiba said Metrobank has a strong balance sheet, which will allow it to withstand potential market volatility in the coming months. Its consolidated assets expanded by 14.5% year on year to P3.3 trillion at end-June.

“I think as with all of the financial institutions, there are plans in place whether rates go up or down. We’re resilient. Our plans are ready,” he added.

The Bangko Sentral ng Pilipinas (BSP) is widely expected to cut rates by a total of 50 basis points (bps) this year, with the first 25-bp reduction potentially happening as early as this week.

The BSP has kept its policy rate at an over 17-year high of 6.5% since October 2023 following cumulative hikes worth 450 bps.

Meanwhile, the US Federal Reserve is likewise expected to begin its monetary easing cycle by September, with markets seeing more than 50 bps in cuts following recent data pointing at a potential slowdown in the world’s largest economy.

The Fed has kept its benchmark overnight interest rate at the current 5.25%-5.5% range since July 2023 after increases worth 525 bps.

CONSUMER LOANS
Meanwhile, Metrobank Senior Vice-President and Consumer Lending Group Head Anna Therese Rita “Peaches” D. Cuenco said the bank wants to increase the share of consumer credit in its loan portfolio and is working towards doubling the current level within the next few years.

“This whole sector is actually a priority of the bank… We are really investing in a lot of promotions, campaigns, resources into growing this business. We are confident that in a couple of years, we will see a significant increase in our growth rates,” Ms. Cuenco said on the sidelines of the same event.

The bank’s consumer loan portfolio grew by 13.7% year on year in the first half.

“Of course our commercial loans will always be strong because the core DNA of Metrobank is still commercial banking. That’s why we want to be also known for consumer loans… We are confident that as a whole, on an institutional level, things will be looking good for all of us,” she added.

Metrobank said in a separate statement that it expects to sustain the growth in its auto and home loan portfolios, driven by consumer demand and new offers.

“We see an overall positive growth trajectory for our auto and home loan businesses as we expect more bookings towards the end of the year given expectations of lower rates in the second half as well as through our offers like the Happy Holideals loan promo,” Ms. Cuenco said. “We’ve started to see a shift in the profile of both our auto and home loan customers. They are a bit younger now, still mostly married, but the single demographic has been increasing as well.”

“Consumer is a priority growth area of the bank and car and home loans play a very big part in that. Our plan is to cater to more customers, open new channels, and constantly upgrade our levels of service,” she added.

As part of its Happy Holideals offers, from Aug. 1 to Oct. 31, Metrobank is waiving fees for car loans for up to P100,000, covering chattel mortgage registration fee, documentary stamp tax (DST), and notarial fee and with an interest rate of 8.7% per annum for a 36-month term.

Once the loan is approved, borrowers will be pre-qualified for a Metrobank Toyota Mastercard.

The bank is also waiving fees for home loans up to P100,000 covering mortgage registration fees, DST, and notarial fees with an interest rate of as low as 6.75% per annum for a five-year fixed term and a pre-qualification for a Metrobank credit card.

“Qualified car and home loan applications must also be approved and subsequently booked on or before Dec. 27, 2024 to enjoy the Happy Holideals offers,” the bank said. — A.M.C. Sy

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