Metrobank Reports Steady Earnings Amid Economic Challenges

Metropolitan Bank & Trust Co. (Metrobank) has reported a net profit of P24.9 billion for the first half of 2026, reflecting a slight increase from P24.8 billion during the same period last year. This performance comes despite a challenging operating environment that has necessitated the bank to allocate more funds for potential credit risks, according to the bank's financial disclosures.

In the second quarter alone, Metrobank recorded a net profit of P12.3 billion, which marked a 2.33% decline from P12.59 billion in Q2 2025. The bank attributed this decrease to higher provisioning for credit losses and lower trading gains due to market volatility. Nevertheless, the bank's net interest income saw a robust increase of 12.13%, reaching P34.38 billion in Q2, bolstered by the growth of its interest-earning assets.

Metrobank's President, Fabian S. Dee, emphasized the bank's disciplined approach in navigating the current economic landscape, noting that the results reflect the strength of Metrobank’s core businesses and the continued trust of clients. The bank's return on equity for the first half stood at 11.98%, down from 12.8% the previous year, while its return on assets decreased to 1.28% from 1.42%.

Despite the challenges, Metrobank reported a 12.4% year-on-year increase in gross loans, with corporate and commercial loans rising by 12.8%. Consumer loans also showed growth, increasing by 11.1%, largely driven by credit card and mortgage lending. The bank's net interest margin remained stable at 3.74%, compared to 3.73% in the previous year.

“Our results reflect the strength of Metrobank’s core businesses, the continued trust of our clients, and our prudent approach to balancing growth and risk.”Fabian S. Dee, President, Metrobank

However, other operating income fell by 24.2% to P6.75 billion in Q2, primarily due to lower net trading and foreign exchange gains amid fluctuating financial markets. This decline was partially offset by an increase in fee-based income, which contributed to a first-half total of P13.9 billion, down 20.99% year-on-year.

Metrobank also increased its loan loss provisioning to P4.09 billion in Q2, up from P3.27 billion in the same quarter last year. For the first half, provisions rose to P7.46 billion from P5.88 billion. Despite these provisions, the bank maintained a low nonperforming loan (NPL) ratio of 1.81%, up from 1.54% the previous year, indicating a relatively stable asset quality.

On the funding side, Metrobank reported a 10.4% increase in deposits, amounting to P2.6 trillion as of June 2026. Low-cost current and savings accounts constituted 60.5% of total deposits, reflecting a strong funding base. The bank's loan-to-deposit ratio was recorded at 81.1%, providing ample capacity for further lending activities.

As of June, Metrobank's total assets grew by 12.7% to P3.9 trillion, while its equity increased by 4.9% to P409.7 billion. The capital adequacy ratio stood at 14.86%, with the common equity Tier 1 ratio at 14.22%, indicating a solid capital position amidst economic uncertainties.