Metrobank profit climbs to P12.6 billion in Q1

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

May 6, 2026 | 12:00am

MANILA, Philippines — Metropolitan Bank & Trust Co. booked a higher profit in the first quarter as stronger margins and steady loan growth offset weaker trading gains, higher provisions and rising operating expenses.

In its quarterly report, the Ty-led bank said net income rose by 2.9 percent to P12.6 billion from P12.25 billion in the same period last year.

“Our first quarter results underscore the resilience of Metrobank’s core businesses and the consistency of our execution,” Metrobank president Fabian Dee said in a statement.

“With strong capitalization, solid asset quality and healthy buffers, we remain well-positioned to manage risks while continuing to support the growth and funding needs of our customers,” Dee said.

Metrobank’s core lending business continued to drive earnings, with net interest income climbing by 13.6 percent to P33.36 billion from P29.38 billion in the first quarter of 2025.

Total interest income grew by 6.3 percent to P47.91 billion from P45.09 billion, mainly due to higher earnings from investment securities as well as loans and receivables.

Interest and finance charges, meanwhile, declined by 7.4 percent to P14.55 billion from P15.71 billion as lower borrowing costs offset higher interest expenses on deposits, particularly time deposits.

The bank’s net interest margin improved by 12 basis points to 3.7 percent.

Gross loans rose by 9.2 percent year-on-year, led by an 11.2-percent increase in consumer loans. Corporate and commercial loans also grew by 8.6 percent, reflecting continued credit demand from businesses.

The lender’s total deposits stood at P2.63 trillion as of end-March. Low-cost current and savings account deposits rose by 8.4 percent year-on-year and accounted for 59.2 percent of total deposits.

Metrobank said it had sufficient room to support further lending, with its loan-to-deposit ratio at 76.6 percent.

On the other hand, total other income fell by 17.7 percent to P7.14 billion from P8.68 billion as trading, securities and foreign exchange gains dropped to P584 million from P2.63 billion.

Provisions for credit and impairment losses jumped by 29.4 percent to P3.37 billion in the first quarter from P2.61 billion a year earlier.

Operating expenses expanded by 9.8 percent to P21.15 billion from P19.25 billion due mainly to higher transaction-related taxes and technology expenses.

The bank’s return on equity eased to 12.32 percent from 12.85 percent, while return on assets slipped to 1.32 percent from 1.40 percent. Earnings per share rose to P2.80 from P2.72.

Asset quality remained manageable although the non-performing loan (NPL) ratio inched up to 1.75 percent from 1.6 percent a year ago.

Metrobank said this was still well below the banking industry’s 3.44 percent as of February. Its NPL cover stood at 137.1 percent, providing a buffer against potential credit risks.

Metrobank’s total consolidated assets expanded by 8.3 percent to P3.76 trillion from P3.48 trillion a year earlier, keeping it as the country’s second-largest private universal bank in asset terms.

The bank remained well capitalized, with its capital adequacy ratio at 14.9 percent and common equity tier 1 ratio at 14.2 percent, both above the minimum requirements set by the Bangko Sentral ng Pilipinas.