Metropolitan Bank Q3 EPS drops, credit losses impact results

Overview

• Metropolitan Bank Q3 2025 EPS falls to $0.67, impacted by credit loss provisions

• Net interest income grows 18.5% yr/yr, driven by loan growth

• Non-performing loans ratio rises to 1.20% due to CRE loan issues

Outlook

• Metropolitan Bank anticipates strong earnings momentum into 2026

• Completion of MBiM technology investment expected in Q1 2026

• Company cautiously optimistic about resolving certain loans by year-end or Q1 next year

Result Drivers

• NET INTEREST INCOME - Driven by an increase in loan balances and a decrease in the cost of funds

• CREDIT LOSS PROVISIONS - Impacted by a $23.9 mln provision for credit losses, mainly from a single CRE loan

• NON-PERFORMING LOANS - Increase in ratio due to issues with a single CRE loan relationship

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Metropolitan Bank Holding Corp is $86.00, about 10% above its October 21 closing price of $77.36

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBwDJN4ga

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)