METROPOLITAN Bank Trust & Co. (Metrobank) is looking to further expand its lending to the consumer segment to help boost its profits as easing interest rates affect margins.
“Actually, we see that when you compare commercial loans versus consumer loans, you see bigger margins for consumer loans unlike for commercial loans. Unlike for commercial loans, you talk about billions or big amounts, but the spreads are really very thin. So, for every peso that you lend out, you get more in return when it’s consumer loans. And we have realized that there’s really a big opportunity in that space. And then of course, it’s supporting also the thrust of financial inclusion,” Metrobank Senior Vice-President and Consumer Lending Group Head Anna Therese Rita “Peaches” D. Cuenco told reporters on the sidelines of an event Friday.
As of end-June, consumer loans made up 22% of Metrobank’s total loan book, she said. The bank’s consumer loans grew by 15.3% year on year in the first half, with auto and home loans climbing by 17.8% and 8%, respectively.
“As of the first half, our consumer loan books have shown steady year-on-year growth. This is expected to continue for the rest of the year, as we launch offers like the Happy Holideals promo and as more Filipinos look into making major life purchases ahead of the holidays,” she said. “Our consumer business remains to be a top growth priority of the bank and car and home loans play a critical role. That is why part of our plans is to provide our clients with offers that will help them achieve goals in their financial journey.”
Ms. Cuenco said the Metrobank Group, including its thrift bank subsidiary Philippine Savings Bank (PSBank), has the largest share of car loans in the industry. Metrobank is also among the top five lenders in terms of housing loan market share.
The official said they do not expect a material deterioration in Metrobank’s asset quality even as increased consumer lending could lead to a slight increase in its nonperforming loans (NPLs).
“We have the best NPLs in the market because we have been very prudent in terms of lending. We constantly review it. Of course, we know that expansion can actually go into riskier segments, so we’re very careful in going into those segments. It will be very guided, very deliberate. But of course, we’re not simply going to blow out our risk indicators just to get volume. It has to be balanced. It’s very sustainable,” Ms. Cuenco said.
“For car and home, we’re only at around… 1-1.2% NPL. That’s how low we are. For some other banks, it reaches as high as 6%. So, I can confidently say we’re really at the best position when it comes to that.”
Ms. Cuenco added the bank will not be increasing its provisioning for credit losses even as it continues expanding into riskier markets.
As part of its efforts to tap the consumer market, Metrobank on Friday launched its 2025 Happy Holideals promo, which runs from Aug. 1 to Oct. 15. Borrowers who get loans approved by Oct. 31 can take advantage of competitive rates and waived fees of up to P100,000.
For car loans, the bank is offering interest rates of 8.7% per annum for a 36-month term, 8.89% for a 48-month term, and 9.11% for a 60-month term, with a one-month advance payment setup.
Waived fees include the security interest or chattel mortgage registration fee, documentary stamp tax, and notarial fee. The loan also comes with a free first-year car insurance package from AXA Philippines.
For home loans, interest rates are at 6.5% per annum for a three-year fixed term, 6.75% for a five-year fixed term, and 7% for a seven-year fixed term.
Fees that can be waived include mortgage registration, documentary stamp tax, and notarial fees.
Metrobank’s attributable net income rose by 8.44% year on year to P12.59 billion in the second quarter.
This brought its first-semester net earnings to P24.85 billion, climbing by 5.25% year on year from P23.61 billion.
Metrobank shares went down by 50 centavos or 0.7% to close at P71 each on Friday. — Aaron Michael C. Sy
