With the Philippine Stock Exchange index (PSEi) reaching new levels, there are certain companies that have stocks listed at the bourse that have also reached new record high prices, with Metropolitan Bank and Trust Co. (Metrobank) being one of them.
On October 7 (Monday), the price of Metrobank shares listed at the PSEi closed at P79.10, reflecting an increase of 52% from the P51.90 closing price logged on October 10, 2023.
On the very first trading day of the year or January 2, Metrobank shares closed at P53.10. And despite the volatility of the PSEi up to the end of June this year, the price of Metrobank shares did not go on a roller-coaster ride and even closed at P67.10 per share on June 27 this year. Meanwhile, the PSEi settled at below 6,400 points on June 27.
To recall, the PSEi reached a high of 6,979.81 points on April 1, the highest in the January-June period before retreating because of the disappointing 5.7% gross domestic product (GDP) growth in the first quarter of this year. The PSEi closed 7,554.68 on October 7 (Monday), the highest for this year, also marking the initial foray of the stock index into the 7,500-point territory this year.
Meanwhile, a research note by Maybank Investment Banking Group (IBG) on July 22, 2024 stated that it forecasts the price of Metrobank shares to reach P80 over a 12-month period (from July 22).
So far, Metrobank has sustained the growth of its net income, reaching a record P23.6 billion in the first six months of 2024 supported by its robust asset expansion, stable margins, well-managed cost growth and healthy asset quality. This translated to a 13.3% return on equity, above the 12.9% recorded in the same period last year.
“Our strong capital position and robust asset profile continued to support our expanding core businesses despite market challenges. Prospects of easing inflation driven by government efforts could further spur consumer demand,” said Metrobank President Fabian S. Dee in a statement.
“We are firmly on track to meet our medium-term growth aspirations as we support various public and private sector initiatives that continue to drive economic growth,” he added.
Gross loans climbed 14.9% year-on-year driven by a 15.2% rise in commercial loans and 13.7% expansion in consumer loans. Net credit card receivables surged by 21.4%, while auto loans grew by 16.6%, sustaining the growth momentum in the consumer segment. Net interest margins edged up to 4.0% from 3.9% last year. As a result, the bank’s net interest income in the first half of 2024 grew by 14.6% to P58.0 billion.
Meanwhile, total deposits grew by 7.8% to P2.4 trillion as of end-June from a year ago.
Note: Currentph is publishing STOCK WATCHER SHORTS to compliment the STOCK WATCHER SERIES that is in video form. Also watch out for the next videos of the STOCK WATCHER SERIES.
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