(CTN News) _ A 50-basis point (bp) increase in interest rates is expected by Metrobank following today’s Bangko Sentral ng Pilipinas (BSP) Monetary Board meeting to control inflation contagion and calm volatile foreign exchange movements.
It is anticipated that we will increase by 50 basis points [on Thursday].
He told reporters on Wednesday that the peso depreciation pace will slow down.
Peso losses this year against the dollar have reached 13.7 percent, a new record low on Wednesday.
In May, the central bank raised rates by 1.75 percent. In August, it raised 3.75 percent by 50 basis points.
Inflation fears will continue to weigh on the peso, Tansingco said.
He noted that Metrobank would remain conservative and maintain the current level of provisions for bad debts.
There is still a long way to go. “We need to see inflation drop and [foreign exchange] rates stabilize before we can,” Tansingco said.
The cover for nonperforming loans (NPLs) at Metrobank stood at 196 percent in the first half of 2022, while the ratio of NPLs to total loans was 1.9 percent.
Our provisions are at the right level. It’s a good fit for the uncertainties we see now,” Tansingco said.
First half 2022 profits were bolstered by higher interest earnings and lower bad loan expenses at Metrobank, led by the Ty family.
To P15.6 billion, net income rose 33 percent from January to June.
Profits nearly doubled from April to June at the country’s second-largest lender.
In the first half, Metrobank reported an increase of 9 percent in gross loans to P1.3 trillion.