Metrobank to boost consumer lending to support profitability

METROPOLITAN Bank Trust & Co. (Metrobank) is looking to further expand its lending to the consumer segment to help boost its profits as easing interest rates affect margins.

- Aaron Michael C. Sy

"Actually, we see that when you compare commercial loans versus consumer loans, you see bigger margins for consumer loans unlike for commercial loans. Unlike for commercial loans, you talk about billions or big amounts, but the spreads are really very thin. So, for every peso that you lend out, you get more in return when it's consumer loans. And we have realized that there's really a big opportunity in that space. And then of course, it's supporting also the thrust of financial inclusion," Metrobank Senior Vice-President and Consumer Lending Group Head Anna Therese Rita "Peaches" D. Cuenco told reporters on the sidelines of an event Friday.

As of end-June, consumer loans made up 22% of Metrobank's total loan book, she said.

The bank's consumer loans grew by 15.3% year on year in the first half, with auto and home loans climbing by 17.8% and 8%, respectively.

"As of the first half, our consumer loan books have shown steady year-on-year growth.