Higher Profit for Metrobank

Metrobank profit up 11%

Gerard S. dela Peña, Business World, August 17, 2009

TY-LED Metropolitan Bank and Trust Co. (Metrobank) said its net income jumped by a little over a tenth in the first half due to sustained growth in its lending and treasury operations.

In a statement released during the weekend, Metrobank said its net profit for the six months ending in June grew by around 11% to P3.1 billion from P2.8 billion in the same period last year.

“Interest margins and trading gains contributed strongly to the bottom line even as we provisioned aggressively and improved our cost income ratio,” Metrobank President Arthur V. Ty said in the statement.

“Our performance for the first half of the year reflects our continued focus on risk management and operational efficiency.”

Metrobank, the second largest lender in the country, said its net interest income or earnings from lending activities and held-to-maturity investments grew by 30% to P13.8 billion during the period as growth of low-cost deposits made funding of loans cheaper.

Stable fee-based earnings as well as a 72% growth in Metrobank’s foreign exchange and securities trading business to P2.3 billion — which resulted from lower interest rates and an improvement in the financial markets — buoyed its profit, it added.

Also contributing to the bank’s higher net income in the first half was a 7% decline in its operating income to P12.6 billion as a result of efforts to rationalize its operations for better efficiency.

Metrobank also set aside a total of P3.2 billion during the period for provisions for potential losses, higher than P1.2 billion in the same period last year, even if its non-performing loan ratio was maintained at 4.8%, slightly higher than 4.7% last year.

The bank’s capital grew to P71 billion, 14.5% higher than P62 billion last year, bringing its risk-adjusted capital adequacy ratio — a measure of financial strength — to 14.3%, higher than the central bank’s 10% minimum.

Metrobank and its subsidiaries’ total resources summed up to P777.2 billion.

Its shares were unchanged at P38 apiece on Friday [August 14, 2009]. 

Tale of the Tape for Metrobank*:

#14 in Largest Public Companies in Revenues 2008 vs 2007

   Revenues in 2007     Php 56,491,464,000

   Revenues in 2008     Php 55,456,885,000

   Increase                  -1.83%

Note: Industry leader Banco de Oro Unibank, Inc. (BDO) ranked 13th.  Bank of the Philippine Islands (BPI) is close behind at #17.

#11 in Largest Public Companies in Net Income 2008 vs 2007

   Net Income 2007     Php 7,043,374,000

   Net Income 2008     Php 4,407,868,000

   Increase                  -37.42%

Note: Bank of the Philippine Islands (BPI) led the group as it ranked 8th.  China Banking Corporation (CHIB) followed as 19th placer.

#2 in Largest Public Companies in Assets 2008 vs 2007

   Assets 2007            Php 716,067,813,000

   Assets 2008            Php 764,809,447,000

   Increase                 6.81%

Note: Henry Sy’s Banco de Oro Unibank, Inc. (BDO) ranked 1st.  Ayala’s Bank of the Philippine Islands (BPI) is close behind at #3 spot.

#18 in Largest Public Companies in Market Capitalization 2008 vs 2007

   Market Cap 2007     Php 98,496,179,575.00

   Market Cap 2008     Php 41,567,195,050.00

   Increase                 -57.80%

 Note: Bank of the Philippine Islands (BPI) is #6 in the list.  Next is Banco de Oro Unibank, Inc. (BDO) at #14. 

#6 in Largest Public Companies in Equity 2008 vs 2007

   Equity 2007            Php 70,515,621,000

   Equity 2008            Php 65,092,186,000

   Increase                 -7.69%

 Note: Bank of the Philippine Islands (BPI) closely followed at #7.  Next is Banco de Oro Unibank, Inc. (BDO) at #8. 

   As we saw, Metrobank (MBT) is among the top 3 banks in the country, currently 2nd overall after Banco de Oro, followed by Bank of the Philippine Islands.  Here are short notes of terms featured above:

   Revenues of companies with fiscal year not ending on December are trailing-four-quarter revenues.  Net income refers to net income attributable to parent shareholders.  Net income of companies with fiscal year not ending on December are trailing-four-quarter income.   Stockholders’ Equity refers to equity attributable to parent shareholders.  Assets and Market Capitalization are on a year-end basis and are self-explanatory.

Sources:

http://www.bworldonline.com

Logo from Metrobank official website

*Data is based on the financial statements submitted by 233 listed companies as of May 13, 2009.  Foreign-domiciled companies and companies listed after December 31, 2008 are not included in the lists.