Metropolitan Bank & Trust Co. (Metrobank) reported a net income of ₱24.9 billion for the first half of 2026, as steady loan expansion and resilient core banking operations helped cushion the impact of a more challenging operating environment.
The country’s second-largest private universal bank said its performance was supported by continued growth in lending, stable net interest margins, and higher fee-based income, despite market volatility and rising operating costs.
“The operating environment remained challenging in the first half, requiring us to stay disciplined and focused,” said Metrobank President Fabian Dee.
“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. We will continue to support our clients while pursuing sustainable growth in an uncertain environment,” he added.
Lending remains the primary growth driver
IMAGE CREDIT: Metrobank
Metrobank‘s net interest income rose 12.8% year-on-year to ₱67.7 billion, while its net interest margin remained stable at 3.7%, reflecting sustained lending activity despite a more cautious business climate.
Gross loans increased 12.4% from a year earlier, with both corporate and consumer segments posting double-digit growth.
Corporate and commercial loans expanded 12.8%, driven by higher investment spending and increased working capital requirements among businesses. Consumer lending also remained healthy, growing 11.1%, supported by continued demand for credit cards and home loans.
The bank also continued to strengthen its funding base, with total deposits climbing 10.4% to ₱2.6 trillion.
Low-cost current and savings accounts (CASA) increased 6.4%, accounting for 60.5% of total deposits, helping Metrobank maintain a relatively low funding cost. Its loan-to-deposit ratio edged up to 81.1%, indicating ample liquidity to support further lending expansion.
Fee income helps cushion market volatility
Beyond lending, Metrobank generated ₱10 billion in fee and trust income during the first six months of the year, up 9.3% from the same period in 2025.
The increase partly offset weaker trading income as financial markets remained volatile during the period.
Operating expenses rose 10.1% to ₱42.4 billion, largely due to higher transaction volume-related taxes and continued investments in technology and digital banking capabilities. The bank’s cost-to-income ratio stood at 52.4%.
Asset quality remains stronger than industry average
Despite macroeconomic headwinds, Metrobank said the quality of its loan portfolio remained solid.
Its non-performing loan (NPL) ratio stood at 1.8%, significantly below the industry’s 3.4% average.
The bank nevertheless increased provisions by 26.8%, keeping its NPL coverage ratio at a strong 133.3% as a buffer against potential deterioration in credit quality should economic conditions weaken further.
Restructured loans also remained minimal at 0.3% of total loans, well below the industry’s 2.0% level.
Capital position stays robust
Metrobank ended the first half of 2026 with ₱3.9 trillion in total consolidated assets, up 12.7% from a year earlier, maintaining its position as the country’s second-largest private universal bank by assets.
Shareholders’ equity increased 4.9% to ₱409.7 billion, while capital and liquidity ratios remained comfortably above regulatory minimums.
As of the end of June, the bank reported a Capital Adequacy Ratio (CAR) of 14.9%, a Common Equity Tier 1 (CET1) ratio of 14.2%, and a Liquidity Coverage Ratio (LCR) of 150.1%, underscoring its capacity to support future lending while navigating an uncertain economic environment.
The results also reinforce Metrobank’s role as one of the banking sector’s key institutions supporting the Bangko Sentral ng Pilipinas‘ efforts to maintain a stable, well-capitalized financial system while expanding access to credit and digital financial services across the country.
