Weekly Updates

Value turnover was retained at P5.4B while foreign outflows
(-P100M). Market breadth was likewise negative as losers outnumbered gainers 151 to 37.

The PSEi continued its strong rally for the seventh straight day, jumping 112.80 pts (up 1.67%) to 6,850.64 and breaking above resistance level of 6,800.

Metropolitan Bank & Trust Co.’s (MBT) 1H22 net income rose to P15.6bn (+33.4% y-o-y) – ahead of DBS’s above consensus expectations on modest rise in interest and non-interest income as well as the flat increase in operating expenses. Net interest income grew 6% y-o-y to P39.8bn, while non-interest income rose by 8% y-o-y to P14.9bn on the back of higher fee-based income. Gross loans rose by 9% y-o-y to P1.3tr, led by a 12% growth in corporate and commercial lending and 16% increase in gross credit card receivables Operating expenses was flat at P29.4bn (+0.2% y-o-y) backed by ongoing efforts to improve operational efficiency, resulting in 53.8% cost-to-income ratio (1H21: 57.2%). Non-performing loans (NPLs) ratio eased to 1.9% in 1H22 (1H21: 2.25%). As of end Jun-22, capital ratios remain well above regulatory requirements with Common Equity Tier 1 (CET 1) Ratio and Capital Adequacy Ratio (CAR) at 16.8% and 17.6%, respectively.

The Bangko Sentral ng Pilipinas (BSP) has ruled out another 75-basis-point (bps) rate hike as it is looking at
further raising key policy rates by 25 to 50 bps on August 18 Aug 2022. Moreover, during the Post-SONA Economic
Briefing 2022, BSP Governor Felipe Medalla said the Monetary Board is unlikely to hold another surprise off-cycle meeting. Medalla added that the remaining rate of increase would be data-dependent.