Metropolitan Bank & Trust Company (MBTPM)

The current credit level is sufficient for Metrobank to maintain investment-grade issuer credit as a large privately owned Philippine bank, and the basic repayment and refinancing capacity for senior bank bonds is supported by the deposit base, earnings power, capital, and liquidity. The direction of credit quality is not deteriorating sharply because of strong capital and deposits, but given consumer credit, credit costs, lower capital ratios, and the sovereign outlook, the appropriate stance is flat to moderately cautious rather than one of active improvement. Based on end-2025 CET1 of 16.1%, 1Q26 CET1 of 14.2%, LCR of 151.1%, and an NPL ratio of 1.75%, the likelihood of a rapid near-term change in credit quality is not high, but the view needs to be revisited if deterioration in card and consumer loans, continued CET1 decline, and sovereign rating weakness occur together.

The largest factors supporting this credit strength are deposit-led funding and thick capital. Deposits were PHP2.66tn at end-2025, the company-disclosed CASA ratio was 59.2%, and the 1Q26 loan-to-deposit ratio was 76.6%. This indicates a structure in which the loan portfolio is not excessively dependent on market funding. The CET1 ratio was also 16.1% at end-2025, and Fitch assesses it as high among large bank peers. These are reasons why the issuer credit would not immediately break down even if credit costs increase to some extent.

Earnings also support credit. Net income attributable to parent was PHP49.7bn in 2025 and PHP12.6bn in 1Q26, while ROE was 12.3% in 2025. NII was PHP124.6bn in 2025 and PHP33.4bn in 1Q26, and core earnings remain strong. Fee and trust income is also increasing. Metrobank is therefore not a bank that relies only on capital for loss absorption; it is a bank that can absorb a certain level of credit costs through earnings.