Metrobank lending jumps as interest rates recede
Metropolitan Bank and Trust Co. (Metrobank) saw its loans portfolio fatten across segments as the Bangko Sentral ng Pilipinas continued to loosen monetary policy.
So far this year, the BSP has slashed the benchmark rate for overnight borrowing by 50 basis points to 5.25 percent.
Rate cuts typically boost demand for loans due to lower borrowing costs.
In the first semester of 2025, Metrobank reported that gross loans were up 13.2 percent.
Institutional loans jumped by 12.7 percent and consumer loans rose by 15.3 percent.
Despite the loan growth, Metrobank’s asset quality improved as nonperforming loans ratio eased to 1.5 percent from 1.7 percent in the same period last year.
Noninterest income surged by 46.2 percent to P17.6 billion, supported by improved fee income and higher trading and foreign exchange gains.
The stronger lending, along with foreign exchange gains, buoyed Metrobank’s first-semester net income by 5 percent to a record P24.8 billion. The bank is expecting to sustain growth the rest of the year.
In a stock exchange filing on Friday, the Ty family-led bank said its net interest income reached P60 billion, up by 3.45 percent due to sustained growth across its business segments.
“Our first half performance reflects the continuing strength of our core businesses,” Metrobank president Fabian Dee said in their disclosure.
“As we enter the second half of the year, we remain focused on building on our fundamentals and implementing prudent strategies, which will allow us to continue helping our clients grow further as well as achieve our medium-term goals,” Dee added.
Operating expenses increased by 5.94 percent to P38.55 billion as the bank saw higher manpower and miscellaneous costs, particularly transaction-related taxes, insurance and information technology expenses.
As of end-June, Metrobank’s assets were at P3.5 trillion.
