Building moats for your portfolio

Warren Buffett has famously lauded businesses that have built moats that give them a huge advantage over their competitors.

Could moats be built around your portfolio as well?

You will need protective barriers by using the right investment strategies and tools to protect your wealth.

With Metrobank, through Metrobank Wealth Insights, we aim to provide you with these essential tools through investment advice, analysis, and insights to help you make the right decisions.

In this week's issue, we begin building that desired moat with a preview of the October inflation data. We also examine the US Fed policy rate cuts. The last story unearths the conditions and initiatives that led to Metrobank's record income for the first nine months of the year.

It's all part of our own moat-building so we can serve you better.

You're in good hands.

Metrobank Wealth Insights Team

October Inflation Preview: Will inflation remain subdued?

Inflation surprisingly slowed to an over four-year low in September. Now, the question: Will headline inflation remain subdued for the rest of the year?

Metrobank Research sees annual headline inflation in October settling at 2.4%, bringing the year-to-date number to 3.3%, slightly lower than the 3.4% in September but still within the Bangko Sentral ng Pilipinas (BSP)’s 2-4% target.

Read more: October Inflation Preview: Will inflation remain subdued?

Fed Policy Rate Preview: Fed seen scaling back on rate cuts

In the US, the current inflation and labor market backdrop could point to the Federal Reserve (Fed) dialing back on the pace of policy rate cuts for now.

Metrobank Research forecasts two more 25-basis-point reductions in the remaining Federal Open Market Committee (FOMC) meetings this year, bringing interest rates to 4.5% by end-2024.

Read more: Fed Policy Rate Preview: Fed seen scaling back on rate cuts

Metrobank posts record income as of September amid robust loan growth

Metropolitan Bank & Trust Co.’s (Metrobank) net income rose by 12.4% to a record PHP 35.7 billion in the nine months ending September from a year ago, supported by the bank’s strong asset expansion, recovery in non-interest income, and improved asset quality.

This translated to a 12.9% return on equity, higher than the 12.8% recorded in the same period last year.

“Our robust results reflect our strong drive to continue supporting the growing needs of our clients, all while preserving the health of our portfolio,” said Metrobank President Fabian S. Dee.

Read more: Metrobank posts record income as of September amid robust loan growth

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