Metrobank Income Rises 33.36% 1H22, Stock Seen to Trend up

George Ty-led Metropolitan Bank and Trust Company (MBT) saw its net income rise 33.36% to Php15.59 billion in the first semester of 2022 from Php11.69 billion in the same period last year. The said rise in its bottom line was mainly due to a 2.48% expansion in its total interest income, double digit decline in its interest and finance charges, notable decrease in its provision for credit and impairment losses, and robust growth in its non-lending operations. For 1H22, MBT’s total net interest income rose 2.48% to Php54.03 billion from Php43.94 billion. While its interest income on loans and receivables fell by 5.54% to Php32.17 billion and deposits with banks and others slid by 17.39% to Php1.25 billion, this was more than offset by a 38.65% leap in interest income on trading and investment securities which reached Php11.61 billion in the period. Moreover, the bank also saw a 45.59% decrease in provision for credit and impairment losses to only Php3.83 billion from Php7.03 billion. Meanwhile, MBT’s non-interest income, which accounted for 27.63% of its top line, increased by 8.45% to Php15.20 billion in 1H22 from Php14.02 billion in 1H21. While the bank’s trading and fx gains fell 14.88% to Php3.44 billion, this was more than offset by a 14.31% rise in service charges, fees and commissions to Php7.31 billion and a 24.27% jump in miscellaneous income to Php4.45 billion.

From a technical standpoint, the stock appears to be in the process of completing an interim inverted head and shoulders. In the last two weeks, the stock has likewise been tightening above its 100-day moving average, drawing a potential bullish flag as its midrun base’s right shoulder. This places the stock for a possible upside break soon. Note that a successful clearance above Php53.50 may send it to its next key resistance at the Php60.00 area.

Now look at the stock’s long term chart, one can see that it is actually in the process of building a wide cup and handle base. Its ability to establish a series of higher low support places it in a position to eventually break its notable resistance at its previous floor at Php60.00. Note that a break past Php60.00 is actually a major technical event, one that may launch the stock back to its all-time peak of Php92.80.

MBT write-up from the Trading Edge Equity Advisor:

November 9, 2021

Metropolitan Bank and Trust Company (MBT) may likely add onto its recent rally. This is so as the stock appears to have just broken out from a cup and handle formation. While the stock may establish a fresh bull run, it may first encounter a substantial resistance at the support of a long run top around the Php57.00 to Php60.00 zone.

December 19, 2021

Metropolitan Bank and Trust Company (MBT) may likely see more trade inflows in the coming days. From a technical point of view, one can see that the stock has just cleared the resistance of a 12-month consolidation. On a bigger time frame, this consolidation actually forms the right part of a wider bullish reversal that resembles a cup and handle. In any case, given its successful break above Php52.00, the stock may then start to trek north and reach for its next major resistance at the floor of a prior multi-year bearish reversal at Php57.00 to Php60.00.

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