Metrobank Q1 profit rises to P12.6B

METROPOLITAN BANK & Trust Co.’s (Metrobank) net profit rose by 2.86% in the first quarter, supported by higher interest and fee earnings.

The bank’s attributable net income climbed to P12.603 billion in the first three months of 2026 from P12.253 billion in the same period last year, it said in a disclosure to the stock exchange on Tuesday.

This translated to a return on equity of 12.32% and a return on assets of 1.32%, down from 12.85% and 1.4%, respectively.

“Our first-quarter results underscore the resilience of Metrobank’s core businesses and the consistency of our execution. 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,” Metrobank President Fabian S. Dee said.

The bank’s net interest income rose by 13.57% to P33.36 billion last quarter from P29.38 billion previously, backed by strong loan growth.

Its interest income increased by 6.25% year on year to P47.91 billion, while interest expense decreased by 7.42% to P14.55 billion.

As a result, Metrobank’s net interest margin improved to 3.74% from 3.62%.

“Gross loans grew by 9.2% year on year with corporate and commercial loans up 8.6% and consumer loan growth increasing by 11.2%, indicative of economic growth trends,” it said.

“Metrobank’s portfolio health remains intact. Nonperforming loans (NPL) ratio stood at 1.75% during the quarter, largely steady from end-2025 level and well below industry’s 3.44%, as of February 2026. NPL cover of 137.1% further provides a strong buffer against risks to asset quality.”

The bank’s NPL ratio was at 1.6% at end-March 2025.

Meanwhile, the bank’s other operating income went down by 17.71% to P7.14 billion in the first quarter from P8.68 billion a year ago.

The decline was mainly due to the 77.8% slump in its net trading and foreign exchange gains to P584 million from P2.63 billion amid market volatility.

This was partially offset by the 11.56% growth in its fee-based earnings to P4.79 billion. Miscellaneous income also edged up to P1.78 billion from P1.76 billion previously.

Metrobank’s operating costs increased by 9.83% year on year to P21.15 billion in the quarter from P19.25 billion, mainly driven by transaction-related taxes and technology expenses.

“Total provision for credit and impairment losses of the group was higher for the quarter ended March 31, 2026 or amounted to P3.37 billion compared with P2.61 billion provision in 2025,” it added.

As a result, its cost-to-income ratio stood at 52.48%, up from 50.84% the prior year.

On the funding side, total deposits were at P2.63 trillion at end-March. Current and savings accounts or CASA deposits rose by 8.4% year on year, accounting for 59.2% of the total.

“The bank continues to have sufficient capacity to support lending with loan-to-deposit ratio of 76.6%,” it said. This was down from 82.80% a year prior.

Metrobank’s assets stood at P3.76 trillion at end-March, growing by 8.3% year on year. Equity rose by 5.1% to P396.4 billion.

Its capital adequacy ratio was at 14.87%, while common equity Tier 1 ratio stood at 14.2%, both down from 15.04% and 14.35% a year ago.

Liquidity coverage ratio was at 151.1%.

Metrobank shares dropped by P2.10 or 3.17% to close at P64.20 each on Tuesday. — Aaron Michael C. Sy