Metrobank's nine-month profit dips to PHP 36.3 bn as loans grow 13.0% and its NPL ratio rises

Implications for lenders

Metrobank's consumer loan growth slowed to 8.9% while its NPL ratio rose to 1.9%, so lenders competing for the same borrowers may find Metrobank more selective in consumer credit. A rising NPL ratio at a bank with a low starting level may justify closer monitoring of early delinquencies and of borrowers' total debt across lenders.

Implications

Facts

Metropolitan Bank & Trust (Metrobank) reported net income of PHP 36.3 bn for the first nine months of 2026, down from PHP 37.3 bn a year earlier. ¹ The bank said fee and trust income growth tempered the effect of fluctuating market conditions on trading income. Net interest income rose to PHP 102.7 bn, up 11.9% year on year, and the net interest margin was 3.9%, up from 3.7% a year earlier. ²

Gross loans grew 13.0% year on year, vs 10.8% a year earlier. ³ Institutional loans grew 14.2%, up from 9.5% a year earlier, while consumer loans, supported by credit cards and mortgages, grew 8.9%, down from 15.8% a year earlier. ⁴

The NPL ratio was 1.9%, up from 1.7% a year earlier, and NPL cover was 131.8%, down from 147.4% a year earlier. ⁵ The loan-to-deposit ratio rose to 83.8%, up from 76.6% a year earlier, with current and savings accounts at 61.2% of deposits. The CET1 ratio was 13.8%, down from 16.3% a year earlier, and the capital adequacy ratio 14.5%, down from 17.0% a year earlier. ⁶

Analysis

Cross-bank: the three largest private banks all grew loans faster than the banking system (11.4% in September, a T&S calculation from BSP figures), but profit and credit quality moved differently. BDO's nine-month profit rose 0.8% with its NPL ratio falling to 1.60% and cover at 132%. BPI's NPL ratio rose to 2.50% with cover at 89.6%. Metrobank sits between them: its NPL ratio of 1.9% is low against the system's 3.27%, but it has risen over the year while cover has fallen to 131.8%.

Mix: Metrobank's growth has shifted toward institutional lending, with consumer loan growth at 8.9% against 16.2% for banks' consumer loans to residents in September. Loans also grew faster than deposits, lifting the loan-to-deposit ratio to 83.8%. Metrobank is therefore growing through corporate credit and margins rather than consumer volume, and faster loan growth and a wider margin did not lift its profit.

Counterpoints and uncertainties

The 2026 release gives no prior-year profit or provision figures, so the year-earlier comparisons rely on the bank's 2025 results as reported by SunStar. The release does not explain the fall in capital ratios, which may reflect dividends, asset growth or regulatory changes. Bank-level NPL ratios are not directly comparable across banks because loan mix and write-off policies differ.