Money Basics | Investing

What is Sunk Cost Fallacy?

by Metrobank

November 06, 2025

Metropolitan Bank & Trust Co. (Metrobank) reported net earnings of PHP12.3 billion in first three months of the year driven by robust loan growth, strong fee and trading income and moderating cost increase. Pre-provision operating profit in 1Q 2025 rose 8.8% year-on-year to PHP18.8 billion.

Our first quarter performance keeps us on track in achieving our medium-term growth strategies even as global uncertainties continue to persist. Our strong capitalization and healthy portfolio give us and our clients the assurance on our ability to navigate the changing economic landscape," said Metrobank President Fabian S. Dee.

The Bank's net interest income edged up to PHP29.4 billion in the first three months of the year, supported by sustained growth of its lending business.

Metrobank's gross loans continued to expand substantially, rising by 16.1% year-on-year on strong performance across all segments. Commercial loans grew by 16.1%, driven by the sustained rise in corporate capital expenditures. Consumer loans portfolio similarly grew at a robust pace of 16.0%, driven by auto loans and gross credit card receivables, which jumped 21.4% and 17.9% year-on-year, respectively.

Meanwhile, total deposits amounted to PHP2.2 trillion, of which 64.4% are low-cost current and savings accounts (CASA).

Non-interest income posted a solid growth of 31.9% to PHP 8.7 billion during the quarter. Fee income jumped by 10.5% to PHP 4.3 billion supported by the expanding consumer business. Meanwhile, combined trading and foreign exchange gains leaped nearly fourfold to PHP 2.6 billion.

Meanwhile, operating cost growth was kept at a moderate pace of 7.0%, keeping cost to income ratio at 50.8%.

Non-performing loans (NPL) accounted for just 1.6% of total loans, which is below the industry's reported 3.5% NPL ratio as of February this year. The Bank booked PHP 2.6 billion in provisions during the quarter, with NPL cover remaining high at 150.9%, providing a substantial buffer against potential portfolio risks.

The Bank's total consolidated assets expanded by 9.1% to PHP3.5 trillion, making Metrobank the second largest in terms of assets among the private universal banks. Total equity stood at PHP377.2 billion, with Capital Adequacy Ratio at 15.4% and Common Equity Tier 1 (CET1) ratio at 14.7%, all well above the minimum regulatory requirements.

Our notable performance in wealth management was recognized once again with Metrobank clinching the Philippines’ Best Bank for Ultra-High-Net-Worth clients at Euromoney's Global Private Banking Awards 2024. Moreover, last March, Fitch Rating upgraded the Bank's viability rating to bbb-/stable from bb+/stable, signifying its credit strength or superior asset quality relative to the industry and healthy capital buffers against risks associated with high credit growth. Fitch Rating likewise affirmed Metrobank's Issuer Default Rating of BBB- with a stable outlook.

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Our notable performance in wealth management was recognized once again with Metrobank clinching the Philippines’ Best Bank for Ultra-High-Net-Worth clients at Euromoney’s Global Private Banking Awards 2024. Moreover, last March, Fitch Rating upgraded the Bank’s viability rating to bbb-/stable from bb+/stable, signifying its credit strength or superior asset quality relative to the industry and healthy capital buffers against risks associated with high credit growth. Fitch Rating likewise affirmed Metrobank’s Issuer Default Rating of BBB- with a stable outlook.

- Fabian S. Dee, Metrobank President

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Gallery

2025 PDS Annual Awards Video