DOWNLOAD
Sub-sector: Banks
Mitsubishi UFJ Financial Group
- Sector: Financial Services
- Sub Sector: Banks
- Region: Japan
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 19 Mar 2026MUFG is the largest of Japan’s three megabanks, and has the most diversified operations by business line and geography; it had also been the most acquisitive till the early 2020s.
Core profitability had been weak due to Japan’s ultra-low interest rates and growth; that improved post an efficiency drive and a CEO change in April 2020; the bank has improved international margins and fee income, and now benefits strongly from rising domestic interest rates.
Given its size and systemic importance, MUFG is considered too big to fail, and will be supported by the Japanese government if needed.
Business Description
AS OF 19 Mar 2026- The 2 main banks of MUFG are MUFG Bank (earlier Bank of Tokyo-Mitsubishi UFJ or BTMU) & Mitsubishi UFJ Trust & Banking. In the early stages of Japan's long banking crisis, Bank of Tokyo merged with Mitsubishi Bank, and in the late stages they absorbed UFJ (former Sanwa Bank & Tokai Bank) while Mitsubishi Trust absorbed Toyo Trust & Nippon Trust.
- The group includes consumer lenders Mitsubishi-UFJ NICOS & ACOM, and securities/IB JVs with Morgan Stanley. MUFG invested in Morgan Stanley in 2008 and now has a ~20% stake. In Dec-22, it completed the sale of its US retail and commercial bank, MUFG Union Bank, to US Bancorp.
- It has a majority stake in Thailand's Bank of Ayudhya (now Krungsri), 20% stakes in Vietnam's Vietinbank and Philippines' Security Bank, and 100% of Indonesia's Bank Danamon.
- In 2019, it acquired Colonial First State from Commonwealth Bank of Australia to strengthen its global asset management business, in 2020 it invested $700 mn in SE Asia's Grab, and more recently has bought Home Credit's Philippine and Indonesian subsidiaries, Link (an Australian pension fund administrator), auto loan companies in Indonesia, Albacore Capital, StanChart's Indonesian retail operations, and a 20% stake in Indian NBFI Shriram Finance.
Risk & Catalysts
AS OF 19 Mar 2026Its recent divisional performance has been strong, with the domestic businesses benefiting from higher BOJ rates, and robust growth in fee income.
Credit costs have been rising because of increased exposure to personal unsecured loans in Japan and Southeast Asia, as well as higher-risk lending in Southeast Asia.
Its stake in Morgan Stanley has led it to take large positions in US corporate finance loans, which has been problematic on occasion.
We see limited risk from rising JGB yields as the large equity unrealised gains dwarf the unrealised losses on the bond portfolio.
Key Metric
AS OF 19 Mar 2026| JPY bn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| Net Interest Revenue/Average Assets | 0.57% | 0.79% | 0.64% | 0.73% | 0.73% |
| Operating Income/Average Assets | 1.11% | 1.22% | 1.23% | 1.22% | 1.48% |
| Operating Expense/Operating Income | 69% | 65% | 61% | 67% | 57% |
| Pre-Impairment Operating Profit / Average Assets | 0.34% | 0.43% | 0.48% | 0.40% | 0.65% |
| Impairment charge/Average Loans | (0.30%) | (0.61%) | (0.36%) | 0.00% | (0.23%) |
| ROAA | 0.32% | 0.30% | 0.39% | 0.47% | 0.60% |
| ROAE | 6.7% | 6.5% | 8.1% | 9.3% | 11.5% |
| CET1 post Basel 3 reforms excl. secs gains | 10.4% | 10.3% | 10.1% | 10.8% | n/a |
CreditSight View Comment
AS OF 05 Mar 2026MUFG is the largest of the megabanks with more diversified business lines than its peers. Digitalisation and operational efficiency improvements, in addition to higher rates in Japan and the US, had led to much better results in FY24. Lending discipline has lifted international margins; domestic margins though lag its peers. Its ~20% shareholding in Morgan Stanley has been a boon. Its $ liquidity is the best amongst its peers, and government support is assured. Its CET1 ratio ratio has fallen to ~180 bp, which we see as low; pro-forma for the Shriram acquisition it will fall to a particularly low ~120 bp. We see current spreads as having ~14 bp of upside (to flat to JPM for 6NC5) and move it to Outperform.
Recommendation Reviewed: March 05, 2026
Recommendation Changed: March 05, 2026
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
How may we help you?
Search topics about wealth insights and investments.Sumitomo Mitsui Financial Group
- Sector: Financial Services
- Sub Sector: Banks
- Region: Japan
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 19 Mar 2026SMFG has strong retail, mid and large corporate franchises in Japan, and a decent international corporate bank, but its securities arm SMBC Nikko punches below weight.
After reorganising and building up capital for the full impact of Basel 3, SMFG has been fairly acquisitive to develop its next phase of growth, and has overpaid for assets in Southeast Asia.
Given its size and systemic importance, SMFG is considered too big to fail, and will be supported by the Japanese government if needed.
Business Description
AS OF 19 Mar 2026- The core unit of SMFG is Sumitomo Mitsui Banking Corp (SMBC), whose main predecessors were Sumitomo Bank and Mitsui Bank.
- SMFG's group companies include the securities firm SMBC Nikko, SMBC Trust Bank, SMBC Card Company, SMBC Consumer Finance, Sumitomo Mitsui Finance and Leasing, SMFG India Credit Company (SMICC), Sumitomo Mitsui DS Asset Management, and SMBC Aviation Capital.
- SMFG does not have a large trust business as Sumitomo Trust and Chuo Mitsui Trust chose not to join SMFG, but merged with each other to form the separate Sumitomo Mitsui Trust Holdings.
- It has been acquisitive over the years, particularly in emerging Asia (as part of its 'multi-franchise strategy') and leasing assets (through SMBC Aviation). The group owns in Indonesia 100% of Bank BTPN (now PT Bank SMBC Indonesia) and 51% of Indonesian auto loan company OTO Group, in Vietnam 49% of FE Credit and 15% of VP Bank, in India 100% of Fullerton Capital (now called SMICC) and 24% of Yes Bank, in the Philippines 20% of RCBC, and in the US 20% of Jefferies.
Risk & Catalysts
AS OF 19 Mar 2026SMFG has the strongest Japan retail franchise amongst its peers, and a very strong corporate banking franchise.
Similar to its peers, SMFG aims to focus more on the US, and reduce low return RWAs in Europe and Asia ex-Japan.
SMFG has made a number of acquisitions and taken stakes in banks and NBFIs in Vietnam, the Philippines, India and Indonesia. The group took JPY 135 bn of goodwill impairments in FY24 on its Vietnam investments. RoE on these investments has been poor. More goodwill impairments are likely.
It has increased its stake in Jefferies to 20%, to develop revenue opportunities for SMBC Nikko. Further investments in SMBC Nikko will be required.
Key Metric
AS OF 19 Mar 2026| JPY bn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| Net Interest Revenue/Average Assets | 0.64% | 0.68% | 0.70% | 0.82% | 0.88% |
| Operating Income/Average Assets | 1.23% | 1.26% | 1.39% | 1.44% | 1.62% |
| Operating Expense/Operating Income | 62% | 61% | 60% | 58% | 53% |
| Pre-Impairment Operating Profit / Average Assets | 0.48% | 0.51% | 0.58% | 0.60% | 0.81% |
| Impairment charge/Average Loans | (0.31%) | (0.22%) | (0.27%) | (0.32%) | (0.25%) |
| ROAA | 0.30% | 0.32% | 0.36% | 0.41% | 0.63% |
| ROAE | 5.9% | 6.5% | 7.0% | 8.0% | 12.3% |
CreditSight View Comment
AS OF 05 Mar 2026SMFG has a strong banking business but the performance of non-bank subsidiaries has been variable. Its markets business, particularly internationally, is sub scale. The group became acquisitive from 2021, taking a 49% stake in a leading Vietnamese NBFI and 15% of its parent (VP Bank), 20% of RCBC of the Philippines, 74.9% of NBFI Fullerton India (now 100%), 4.5% in US IB Jefferies (increasing to 20%), and 24% of India’s Yes Bank for the next stage of growth. Its high CET1 ratio has been whittled down by acquisitions. FY24 results were boosted by share sales and structured investment trusts, 9M25 showed a large jump on base effects. Govt. support is assured. We move it to O/P as we see 10 bp of upside. We see FV for its 6NC5 at 2 bp behind MUFG’s, which in turn should be flat to JPM.
Recommendation Reviewed: March 05, 2026
Recommendation Changed: March 05, 2026
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
How may we help you?
Search topics about wealth insights and investments.Bank of Philippine Islands
- Sector: Financial Services
- Sub Sector: Banks
- Country: Philippines
- Bond: BPIPM 5 30
- Indicative Yield-to-Maturity (YTM): 4.40%
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 05 Mar 2026Bank of the Philippine Islands (BPI) is the 3rd largest bank in the Philippines by assets.
We view the bank as too big to fail given its systemic importance in the country. There is also a strong probability of support from the government in addition to its main shareholder, the Ayala Corporation if needed.
BPI has a long history, and we view it as a fundamentally sound bank with strong and improved profitability, and comfortable liquidity. Capital management however has become less conservative, and while asset quality is largely kept in check, we are keeping an eye on strong growth in the non-wholesale book.
Business Description
AS OF 05 Mar 2026- The history of the Bank of the Philippine Islands traces back to 1851. It is the oldest bank in the Philippines and South East Asia. It was first listed on the Philippine Stock Exchange in 1971, and became a universal bank in 1982.
- Ayala Corporation, one of the biggest conglomerates in the country, became BPI's dominant shareholder in 1969. Ayala Corp still holds a 49% stake in the bank.
- BPI has been acquisitive across the years. It merged with Far East Bank and Trust Company and acquired Ayala Insurance Holdings Corp in 2000. It acquired DBS Bank Philippines in 2001 and Prudential Bank Philippines in 2005. DBS was a shareholder of BPI but exited its position in 2013. More recently in January 2024, it completed the acquisition of the Gokongwei conglomerate's Robinsons Bank.
- The bank is predominantly a corporate bank with 70% of its loan book outstanding to corporates, and the balance to MSME and retail as of 4Q25. Management is keen to skew the loan mix further towards MSME and retail.
Risk & Catalysts
AS OF 05 Mar 2026Direct impact from US tariffs is limited given that the Philippines is not a major goods exporter, but there will be second order effects from a slowdown in regional and global growth.
The recent flood controls graft scandal has dampened public infra spending and business sentiment, and private investment, which will weigh on GDP and corporate loan growth at least through 1H26. A prolonged hit to sentiment would exacerbate these effects and strain asset quality.
BSP rate cuts to support growth will pressure the NIM, but BPI’s NIM has been more resilient, driven by a stronger pivot toward higher-yielding retail/MSME lending, RRR reductions, and reduced liquidity drag. We see asset quality risks from the strong unsecured retail and MSME expansion, but BPI’s wholesale-focused book (70% of total loans) provides comfort and provisioning capacity is strong.
Any rating downgrade of the Philippine sovereign would negatively impact BPI.
Key Metric
AS OF 05 Mar 2026| PHP mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| PPP ROA | 2.01% | 2.41% | 2.52% | 2.78% | 6.22% |
| Reported ROA (Cumulative) | 1.10% | 1.59% | 1.93% | 1.98% | 2.00% |
| Reported ROE (Cumulative) | 8.4% | 13.1% | 15.4% | 15.1% | 14.5% |
| Net Interest Margin | 3.30% | 3.59% | 4.09% | 4.31% | 4.59% |
| CET1 Ratio | 15.8% | 15.1% | 15.3% | 13.9% | 13.9% |
| Total Equity/Total Assets | 12.1% | 12.2% | 12.4% | 13.0% | n/a |
| NPL Ratio | 2.49% | 1.76% | 1.84% | 2.13% | 2.18% |
| Provisions/Loans | 0.91% | 0.58% | 0.22% | 0.32% | 1.59% |
| Liquidity Coverage Ratio | 221% | 195% | 207% | 159% | 148% |
| Net Stable Funding Ratio | 155% | 149% | 154% | 146% | 134% |
Our View
AS OF 06 Mar 2026BPI is the third largest bank in the Philippines with a long history. Its traditionally conservative approach has led to a loss of loan market share in the past, as well as a lower NIM than BDO and MBT. Recent brisk expansion in higher yielding retail and MSME loans has strongly improved profitability levels and driven NIM expansion despite rate cuts. While asset quality has slipped with the loan mix shift, it remains acceptable. However, we are watchful of risks from the strong growth in the non-wholesale book as provision reserves have been pared down to lower levels than peers. Still, we are overall comfortable with BPI given the large wholesale book (70% of loans), strong provisioning capacity and comfortable liquidity. We have BPI on U/P from an RV standpoint.
Recommendation Reviewed: March 06, 2026
Recommendation Changed: May 21, 2025
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
How may we help you?
Search topics about wealth insights and investments.Commonwealth Bank of Australia
- Sector: Financial Services
- Sub Sector: Banks
- Region: Australia
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 05 Mar 2026CBA has a very strong franchise in Australia; it is the leader in the retail market and is making good progress in challenging NAB in business banking.
It has been the best managed of the Australian banks for many years, outperforming peers. It lost some of its luster in the latter part of the 2010s due to regulatory and compliance lapses amid charges of complacency, but has since improved into a better institution.
Its capital and liquidity position is robust, and asset quality is strong.
Business Description
AS OF 05 Mar 2026- Originally established by the Australian government in 1911, CBA functioned for some time as Australia's central bank until the establishment in 1959 of the Reserve Bank of Australia. It remained under government ownership until the early 1990s, after which it underwent a transformation from a bureaucratic public sector bank into a widely respected commercial organisation.
- Over the past couple of decades, CBA consolidated its position as the leading bank in Australia with a 24-28% share in household deposits and lending, helped by its acquisition of Bank of Western Australia during the 2008 crisis.
- In New Zealand it owns ASB Bank, but otherwise has been selling non-core assets, including its life insurance business.
Risk & Catalysts
AS OF 05 Mar 2026CBA’s financial health is closely linked to the Australian economy, in particular retail credit quality, mainly housing loans. Rate hikes, to reduce inflation resulting from growth and a tight labour market, will temper growth, but it is still expected to be higher by recent Australian standards, at 2.3% in 2026 and 2.1% in 2027; unemployment is expected to be flat at 4.4%. The bank expects one more rate hike to 4.10%, and for RBA to hold steady at that rate to end-2027.
Earnings/NIMs are under pressure from strong mortgage market and deposit competition, but the bank anticipates continued tailwinds from a higher replicating rate which would hopefully provide sufficient offset.
Business banking growth continues to be stellar and highly profitable. Overall credit growth is expected to continue at 6-8% p.a. over this and next calendar years.
Key Metric
AS OF 05 Mar 2026| AUD mn | Y23 | Y24 | Y25 | 1H26 |
|---|---|---|---|---|
| Return on Equity | 14.0% | 13.6% | 13.5% | 14.0% |
| Total Revenues Margin | 2.2% | 2.2% | 2.2% | 1.1% |
| Cost/Income | 43.7% | 45.0% | 45.7% | 45.9% |
| APRA CET1 Ratio | 12.2% | 12.3% | 12.3% | 12.3% |
| International CET1 Ratio | 19.1% | 19.1% | 20.9% | 18.3% |
| APRA Leverage Ratio | 5.1% | 5.0% | 4.7% | 4.7% |
| Impairment Charge/Avg Loans | 0.1% | 0.1% | 0.1% | 0.0% |
| Gross Impaired Loans/Total Loans | 0.8% | 1.0% | 1.1% | 1.0% |
| Liquidity Coverage Ratio | 131% | 136% | 130% | 132% |
| Net Stable Funding Ratio | 124% | 116% | 115% | 117% |
CreditSight View Comment
AS OF 11 Feb 2026CBA operates as a well-oiled machine in the Australian banking market and is our preferred name in the space. It has the leading position in mortgages and deposits, and is challenging NAB in business banking. An AUSTRAC penalty in 2018 damaged its reputation and remediation costs impacted earnings for a couple of years. The bank sold a number of its non-bank business and equity investments to simplify and focus on its core domestic businesses. It has the highest NIM amongst the Aussie banks. Business banking growth has been stellar and highly profitable. Asset quality is comfortable. Its seniors trade tight but at an acceptable level, while its Tier 2s trade fair. It had a recent dip in performance in 1Q26 but 2Q26 was strong.
Recommendation Reviewed: February 11, 2026
Recommendation Changed: October 05, 2016
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
How may we help you?
Search topics about wealth insights and investments.Security Bank (PH)
- Sector: Financial Services
- Sub Sector: Banks
- Country: Philippines
- Bond: SECBPM 5.5 29
- Indicative Yield-to-Maturity (YTM): 4.694%
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 04 Mar 2026Security Bank has historically been a wholesale focused bank. Rapid retail expansion pre-pandemic led to a large asset quality hit when COVID-19 struck. The bank completed revamping its underwriting processes at end-2021 and has resumed brisk growth in the retail book since.
The bank had a less well-established deposit franchise than most peers, resulting in a heavy hit to NIMs when rates rose this cycle. This has led it to focus aggressively on growing the higher yielding retail and MSME segments, the latter via forming a new business banking segment in 2022.
Previously high capital ratios have hence fallen; the CET1 ratio is a low 12-13%.
MUFG is a 20% shareholder of Security Bank.
Business Description
AS OF 04 Mar 2026- Security Bank was established in 1951 and obtained its universal banking license from the BSP in 1994. It is today the 9th largest bank in the Philippines.
- The bank is majority-owned by longtime owner Frederick Y. Dy (23.7%) and MUFG Bank (20%), which acquired its stake in April 2016.
- SB Finance, a joint venture between Security Bank and Thailand's Bank of Ayudhya (Krungsri), a consolidated subsidiary of MUFG, was launched in 2019. The unit is a consumer finance company formed to engage in the unsecured loans business in the Philippines, focusing on the lower mass retail segment.
- Security Bank's loan portfolio is 32% consumer, 4% MSME and 64% wholesale at 4Q25. The consumer and MSME book is roughly split mortgages (44%), auto loans (23%), credit card (23%) and small business loans (10%).
Risk & Catalysts
AS OF 04 Mar 2026Any rating downgrade of the Philippine sovereign would have a negative impact on Security Bank.
RRR cuts and rates coming down, along with brisk growth in higher yielding but riskier retail and MSME (business banking), are supporting the NIM well. Asset quality indicators however have unsurprisingly started to weaken with a jump in credit costs. We remain cautious given the relatively thin reserve cover and capital buffer. Management is now exercising some prudence in retail loan growth after the emergence of stress in credit cards.
Capital ratios have fallen due to brisk RWA growth and now trail peers. We view current levels as low, but do not rule out capital support from MUFG if needed.
A prolonged hit to sentiment from the flood controls scandal would exacerbate the slowdown in GDP and credit growth, and pressure asset quality.
Key Metric
AS OF 04 Mar 2026| PHP mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Net Interest Margin | 4.43% | 4.23% | 4.49% | 4.73% | 4.66% |
| ROA | 1.0% | 1.4% | 1.1% | 1.1% | 1.0% |
| ROE | 5.6% | 8.4% | 7.0% | 8.1% | 7.9% |
| PPP ROA | 2.30% | 2.17% | 1.97% | 2.18% | 2.38% |
| CET1 Ratio | 19.1% | 16.1% | 15.3% | 12.9% | 12.3% |
| Total Equity/Total Assets | 17.88% | 14.94% | 15.62% | 12.50% | 12.91% |
| Gross NPL Ratio | 3.94% | 2.95% | 3.36% | 2.85% | 2.89% |
| Net LDR | 85.7% | 83.0% | 88.8% | 84.6% | 74.9% |
| Liquidity Coverage Ratio | 150% | 144% | 158% | 178% | 200% |
| Net Stable Funding Ratio | 138% | 122% | 131% | 130% | 146% |
CreditSight View Comment
AS OF 06 Mar 2026Security Bank has historically been a wholesale focused bank. Rapid retail expansion leading up to the pandemic led to a large asset quality fallout. It was conservative for a few years, but resumed aggressive growth in higher yielding but riskier retail and MSME segments to counter NIM pressure. This along with improving funding costs from a declining rate environment has supported margins. Asset quality however is showing stress from the brisk growth in riskier segments as we had anticipated, leading it to start exercising prudence in retail loan growth starting 2H25. We remain cautious about asset quality strains given the relatively thin capital buffer (12.3% CET1 ratio).
Recommendation Reviewed: March 06, 2026
Recommendation Changed: May 21, 2024
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
How may we help you?
Search topics about wealth insights and investments.BDO Unibank
- Sector: Financial Services
- Sub Sector: Banks
- Country: Philippines
- Bond: BDOPM 4.375 30
- Indicative Yield-to-Maturity (YTM): 4.26%
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 03 Mar 2026BDO Unibank (BDO) is the largest bank in the Philippines in terms of assets & market share.
Given its size and systemic importance, BDO is considered too big to fail and is strongly likely to be supported by its controlling shareholder SM Investments, as well as the Philippine government in times of stress.
BDO is widely viewed as the soundest bank in the country given its strong fundamentals, well-diversified businesses, and good management.
Business Description
AS OF 03 Mar 2026- BDO Unibank was established as Acme Savings Bank in 1968, and was then acquired by SM Investments in 1976. It became a commercial bank in 1994 and a universal bank in 1996.
- BDO was listed in May 2002. SM Investments remains the bank's largest shareholder with a 41% stake.
- BDO has expanded through a series of M&As. Among its key transactions, it merged with Dao Heng Bank Philippines in 2001, Banco Santander Philippines in 2003, UOB Philippines in 2005, Equitable PCI Bank in 2007, GE Money Bank in 2009, Citibank Savings, DB Trust and Real Bank in 2014, One Network Bank in 2015 (the largest rural bank in the Philippines), and RB Pandi's banking business in 2019. It also acquired the insurance business of Generali in the Philippines in 2016.
- BDO has the largest distribution network in the country and is ranked the largest bank in terms of consolidated resources, total assets, loans, deposits and trust funds under management.
- Its loan book was split 49% large corporates, 26% middle market, and 25% consumer at 4Q25. 39% of the consumer book comprised mortgages, 31% credit cards, 13% auto loans and the remaining personal loans (13%) and others (5%).
Risk & Catalysts
AS OF 03 Mar 2026Direct impact from US tariffs is limited given that the Philippines is not a major goods exporter, but there is likely to be some second order effects from a slowdown in regional and global growth.
The recent public infrastructure graft scandal has dampened public infra spending, consumer and business sentiment, and private investment, which will weigh on GDP and corporate loan growth at least through 1H26. A prolonged hit to sentiment would exacerbate these effects and strain asset quality. BSP rate cuts to support growth will pressure the NIM, but this is being mitigated by a loan mix shift towards retail.
We see few asset quality risks for BDO given a comfortable NPL cover and an acceptable CET1 ratio, as well as BDO’s large corporates book (~50% of total loans) and good underwriting track record.
Any rating downgrade of the Philippine sovereign would negatively impact BDO.
Key Metric
AS OF 03 Mar 2026| PHP mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| NIM | 4.05% | 4.14% | 4.37% | 4.35% | 4.31% |
| Reported ROA (Cumulative) | 1.2% | 1.5% | 1.7% | 1.8% | 1.7% |
| Reported ROE (Cumulative) | 10.4% | 13.0% | 15.2% | 15.1% | 14.4% |
| Equity/Assets | 11.7% | 11.3% | 11.5% | 11.8% | 11.8% |
| CET1 Ratio | 13.6% | 13.4% | 13.8% | 14.1% | 13.8% |
| NPL ratio | 2.8% | 2.0% | 1.9% | 1.8% | 1.7% |
| Provisions/Loans | 0.72% | 0.64% | 0.59% | 0.46% | 0.43% |
| PPP ROA | 2.1% | 2.3% | 2.7% | 2.5% | 2.4% |
| Liquidity Coverage Ratio | 145% | 141% | 123% | 132% | 121% |
| Net Stable Funding Ratio | 124% | 124% | 124% | 122% | 118% |
CreditSights View
AS OF 06 Mar 2026BDO is the largest bank in the Philippines. Management is well-regarded, the business is well-diversified and it is the market leader in many business lines. The NIM has peaked with the turn in policy rates, but non-interest income is close to a third of operating income given good fee generation and overall core profitability is strong. We remain comfortable with BDO given the large corporate book and comfortable NPL cover, as well as underwriting track record, which provide comfort around the recently robust growth in retail loans. Capital is also acceptable with the CET1 ratio at 13.8%. However, we have BDO on Underperform from an RV standpoint.
Recommendation Reviewed: March 06, 2026
Recommendation Changed: January 07, 2026
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
How may we help you?
Search topics about wealth insights and investments.Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 25 Feb 2026UOB has solid stand-alone credit profile and benefits from the high likelihood of support from the government of Singapore, where it is one of the three major local banks.
The bank is more focused on Singapore and Southeast Asia than on Greater China; its traditional strengths are the SME and retail sectors, although its large corporate book is now over 60% of loans.
UOB has been conservatively managed with a sound risk profile, a strong focus on liquidity and a long track record of relatively good performance. However, its FY25 results showed some softness with substantial provisions set aside for HK and US CRE.
Business Description
AS OF 25 Feb 2026- UOB was established in 1935 as a Chinese family-owned bank catering to the Hokkien (Fujian) community, Singapore's largest Chinese ethnic sub-group. The Wee family owns about 18% of the shares. A further 5.2% is held by the Lien family which previously controlled Overseas Union Bank, which UOB merged within 2001. The Wee family has significant real estate and hospitality interests in Singapore and regionally.
- UOB's main markets are Singapore and Malaysia where its presence dates back to before Singapore's independence. It expanded through acquisitions in Thailand (Bank Radanasin and Bank of Asia) and Indonesia (Bank Buana), and more recently bought over Citi's consumer franchise in Malaysia, Thailand, Indonesia and Vietnam.
- Franchise strengths are in SME and consumer lending. Building & construction accounts for 26% of loans, followed by housing at 24%, financial institutions at 11% and general commerce at 11% at 4Q25.
- Loans by geography comprise Singapore at 50% of loans, Greater China at 13%, Malaysia at 10%, Thailand at 8%, and Indonesia at 3% at 4Q25.
Risk & Catalysts
AS OF 25 Feb 2026UOB has a greater focus on Southeast Asia than its Singapore bank peers, which leaves it open to more asset quality risk in a downturn / high interest rate environment. It has 8% of its loan book in Thailand and 3% in Indonesia, where we are cautious about macroeconomic conditions.
The bank has benefited more from the final Basel III rules implementation than its peers – its CET 1 ratio was previously the lowest among the three but now aligns with peers.
It posted a large profit decline in FY25 which was a negative surprise. Although the improved coverage ratios following the preemptive provision recognition are welcome, its NPL coverage ratio remains 30-50 ppt behind peers. Topline performance also lagged peers.
Key Metric
AS OF 25 Feb 2026| SGD mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| PPP ROA | 1.23% | 1.31% | 1.52% | 1.50% | 1.38% |
| ROA | 0.92% | 0.99% | 1.19% | 1.16% | 0.86% |
| ROE | 10.2% | 11.9% | 14.2% | 13.3% | 9.6% |
| Equity to Assets | 9.3% | 8.6% | 8.8% | 9.2% | 9.0% |
| CET1 Ratio (fully-loaded) | 13.5% | 13.3% | 13.4% | 15.4% | 14.9% |
| NPL Ratio | 1.62% | 1.58% | 1.52% | 1.53% | 1.53% |
| Provisions / Loans | 0.20% | 0.20% | 0.25% | 0.27% | 0.55% |
| Liquidity Coverage Ratio | 133% | 147% | 158% | 148% | 143% |
| Net Stable Funding Ratio | 116% | 116% | 120% | 116% | 116% |
CreditSight View Comment
AS OF 24 Feb 2026UOB is conservatively run with a large family ownership and a sound balance sheet. The bank is more focused on SG and Southeast Asia than on Greater China. Outside SG, its main operations in ASEAN are in Thailand, Malaysia and Indonesia which collectively make up ~20% of its loan book. It acquired Citi’s consumer operations in Thailand, Malaysia, Indonesia and Vietnam, which has been good for the franchise. The bank has benefitted more from the final Basel III rules implementation than its peers but it has lost this advantage again since 3Q25. The substantial preemptive provisions taken in 3Q25 to strengthen coverage ratios heavily hit the bank’s 2H25 results, but UOB’s NPL coverage ratio remained 40-60 ppt behind the two peers. New NPAs have risen due to its CRE exposure in HK and the US.
Recommendation Reviewed: February 24, 2026
Recommendation Changed: July 04, 2017
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
How may we help you?
Search topics about wealth insights and investments.Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 25 Feb 2026ICICI Bank is one of the leading private banks in India and has a good diversified business model, with well regarded life and general insurance subsidiaries.
Under its previous CEO, the bank suffered setbacks from sizeable bad debt problems in FY17/18, but the situation has since stabilised following a leadership change and the bank has done well ever since.
Business Description
AS OF 25 Feb 2026- The original Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 by the World Bank, the Government of India and representatives of Indian industry as a financial institution to provide Indian businesses with medium and long-term project financing.
- In 1994, ICICI established a commercial banking subsidiary, ICICI Bank as India's financial sector opened up, and in 2002 ICICI merged with ICICI Bank, keeping the latter's name.
- Retail now accounts for 51% of its loan book, corporates are at 20%, while rural and business banking & SMEs are at 6% and 21% respectively, and overseas (which is being de-emphasised) consists of just 2% at F3Q26.
- The bank has well regarded life insurance (ICICI Prudential) and general insurance (ICICI Lombard) businesses.
Risk & Catalysts
AS OF 25 Feb 2026RBI repo rate cuts will initially impact the NIM before the lagged effect of deposit repricing catches up over FY26-27.
System loan growth has picked up and should stay robust in coming quarters, supported by GST rate cuts lifting consumption, and improving corporate borrowing momentum amid India’s trade deals with the US and EU and robust public-sector infrastructure capex.
We are cautious about pockets of stress in Indian retail, particularly unsecured retail and microfinance. However, ICICI’s prudence towards the segment than peers, and the banks not playing in the small ticket segment in general, are keeping asset quality well controlled.
Leadership and governance issues under the previous CEO Ms. Chanda Kochhar have been dealt with well, since her replacement in Oct-18.
Key Metric
AS OF 25 Feb 2026| INR bn | FY22 | FY23 | FY24 | FY25 | 9M26 |
|---|---|---|---|---|---|
| NIM | 3.96% | 4.48% | 4.53% | 4.32% | 4.31% |
| ROAA | 1.77% | 2.13% | 2.37% | 2.37% | 2.26% |
| ROAE | 14.7% | 17.2% | 18.7% | 17.9% | 15.9% |
| Equity/Assets | 12.1% | 12.6% | 12.7% | 13.7% | 14.6% |
| CET1 Ratio | 17.3% | 16.9% | 15.4% | 15.8% | 14.6% |
| Gross NPA Ratio | 3.60% | 2.81% | 2.16% | 1.67% | 1.53% |
| Provisions/Loans | 0.97% | 0.65% | 0.30% | 0.34% | 0.47% |
| PPP ROA | 2.97% | 3.28% | 3.36% | 3.37% | 3.30% |
CreditSight View Comment
AS OF 25 Feb 2026ICICI Bank is a preferred name among the Indian FIs we cover. We like the bank’s robust capital and loan loss buffers, strong asset quality, as well as peer leading margins, profitability and liquidity position. Under its previous CEO, the bank suffered setbacks from sizable bad debt problems in FY17/18 but the situation has since stabilised following a leadership change. The bank has emerged stronger from a capital, asset quality and earnings perspective, as it de-risked its book, and took pro-active actions to protect its capital by raising equity and selling small stakes in its well-regarded insurance subsidiaries to raise funds and set aside more general provisions. ICICI last issued a $ bond in 2017; we have ICICI on M/P given likely low trading liquidity.
Recommendation Reviewed: February 25, 2026
Recommendation Changed: December 07, 2020
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
How may we help you?
Search topics about wealth insights and investments.Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 24 Feb 2026Standard Chartered has been making good progress in the past few years, improving its asset quality and profitability and dealing with legacy litigation issues. Capital, funding and liquidity look solid.
However, tensions between China and the West, including reciprocal trade tariffs between the US and China, and global economic headwinds continue to cloud the near term outlook.
Its unusual business mix – headquartered and regulated in the UK but operating primarily in Asia, Africa and the Middle East – means it is well diversified but sensitive to geopolitical developments and emerging market volatility.
Business Description
AS OF 24 Feb 2026- Standard Chartered PLC is the holding company and listed entity of the group, in which Standard Chartered Bank is the main operating company.
- Although Standard Chartered is headquartered in London and therefore subject to UK banking regulation, its operations are mainly in Asia (Hong Kong is its biggest single market, Africa and the Middle East. It is present in over 60 markets.
- It has the usual variety of businesses across these regions, including corporate and institutional banking, retail banking, commercial banking and private banking. It specialises in trade finance and cross-border cash management.
- It is classified as a G-SIB, with a regulatory capital buffer of 1%.
Risk & Catalysts
AS OF 24 Feb 2026Political tensions in Hong Kong, a slowing economy in China and a weak commercial real estate sector, and a US/China trade war have threatened the growth and stability of some of Standard Chartered’s key markets.
A number of Standard Chartered’s markets have underperformed in the past but are now turnaround stories, including India, Korea, Indonesia and the UAE.
The group has had to improve its AML and sanctions controls. In April 2019, it paid a $947 mn fine to US authorities over breaches of US sanctions and a £102 mn fine to the UK FCA for AML weaknesses.
Key Metric
AS OF 24 Feb 2026| $ mn | 4Q25 | Y25 | Y24 | Y23 | Y22 |
|---|---|---|---|---|---|
| Return on Equity | 3.5% | 9.7% | 8.0% | 7.0% | 5.7% |
| Total Revenues Margin | 2.4% | 2.4% | 2.3% | 2.2% | 2.0% |
| Cost/Income | 79.4% | 63.5% | 64.0% | 64.1% | 66.9% |
| CET1 Ratio (Transitional) | 14.1% | 14.1% | 14.2% | 14.1% | 14.0% |
| CET1 Ratio (Fully-Loaded) | 14.1% | 14.1% | 14.2% | 14.1% | 13.9% |
| Leverage Ratio (Fully-Loaded) | 4.7% | 4.7% | 4.8% | 4.7% | 4.8% |
| Loan Impairment Charge | 0.2% | 0.2% | 0.2% | 0.2% | 0.3% |
| Impaired Loans (Gross)/Total Loans | 2.1% | 2.1% | 2.2% | 2.5% | 2.5% |
CreditSight View Comment
AS OF 27 Feb 2026We revised our recommendation on Standard Chartered HoldCo senior from Underperform to Market perform on 26 April 2023, but we changed our recommendations on Tier 2 and AT1 from Fair to Rich on 10 January 2024. The changes reflect StanChart’s recent resilient performance, while taking into account the potential impact from US tariffs policies and exposure to China. Capital and liquidity ratios are robust, and profitability has improved significantly, but the bank continues to face geopolitical tensions inherent in its extensive operations in Hong Kong, China and the rest of Asia.
Recommendation Reviewed: February 27, 2026
Recommendation Changed: April 26, 2023
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
How may we help you?
Search topics about wealth insights and investments.Bangkok Bank
- Sector: Financial Services
- Sub Sector: Banks
- Region: Thailand
- Bond: BBLTB 4.507 30
- Indicative Yield-to-Maturity (YTM): 4.39%
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 24 Feb 2026Bangkok Bank is a family run conservative financial institution, with high capital and liquidity levels.
It acquired Indonesia’s Permata Bank in 2020 which resulted in a meaningful decline in its CET1 ratio to 14%. It has been built back to 17%. Management aims to keep the CET1 ratio above ~16% in preparation for Basel III final reforms.
Profitability (ROA and ROE) has historically been below the industry average, due in part to higher exposure to the lower-yielding corporates segment that has resulted in a lower NIM. However, the returns gap has narrowed as this has supported its relatively better asset quality than most peers in a prolonged sluggish macroeconomic environment.
Business Description
AS OF 24 Feb 2026- Bangkok Bank was set up in 1944 and was listed on the Stock Exchange of Thailand in 1975. It is a family-run bank and the current President of the bank, Chartsiri Sophonpanich, is the grandson of the founder of the bank.
- It is the largest bank by assets in Thailand. It was briefly surpassed by Kasikornbank in 2018, but the Bank Permata acquisition has taken BBL back to No.1.
- The bank is corporate-loan focused, and the loan book was split 49% corporate, 16% SME, 12% retail, and 23% international as at December 2025. It is by far the most international amongst the Thai banks, with branches in 14 economies.
- BBL's overseas presence has been enhanced by the acquisition of Bank Permata, the 12th largest bank in Indonesia. Bank Permata's asset size is ~10% of that of BBL.
Risk & Catalysts
AS OF 24 Feb 2026Thai economic growth is expected to slowdown this year from US tariffs. Ripple effects are in the form of lower bank NIMs as more BOT rate cuts come through to support growth, and credit costs remaining relatively elevated. Moody’s and Fitch have downgraded their rating outlook on the Thailand sovereign (and consequently the Thai banks including BBL at Moody’s, which it currently rates in line with the sovereign) to negative in April and September 2025 respectively on increased risks to Thailand’s economic and fiscal strength.
We see still middling loan growth across the Thai banks due to a focus on quality amid the current backdrop. Trading/investment income is also set to moderate from a high base given a smaller rates tailwind this year. However, we take comfort in BBL’s prudent provisioning, high loan loss buffers and safer large corporate book.
The acquisition of Bank Permata of Indonesia in May 2020 provides BBL with exposure to the high growth opportunities of the Indonesian market, but this also presents higher risks.
Key Metric
AS OF 24 Feb 2026| THB mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| PPP ROA | 1.65% | 1.60% | 1.92% | 2.02% | 2.01% |
| ROA | 0.65% | 0.67% | 0.93% | 1.00% | 1.00% |
| ROE | 5.6% | 5.9% | 8.1% | 8.3% | 8.2% |
| Equity / Assets | 11.4% | 11.5% | 11.8% | 12.2% | 12.5% |
| CET1 Ratio | 15.2% | 14.9% | 15.4% | 16.2% | 17.2% |
| Calculated NPL ratio | 3.20% | 3.10% | 2.70% | 2.70% | 3.00% |
| Provisions / Loans | 1.38% | 1.24% | 1.26% | 1.30% | 1.36% |
| Gross LDR | 82% | 84% | 84% | 85% | 82% |
| Liquidity Coverage Ratio | 270% | 271% | 277% | 265% | n/m |
CreditSights View
AS OF 22 Jan 2026Bangkok Bank’s strength has been its large corporate book and strong capital. It completed the acquisition of Indonesia’s Bank Permata (~12% of loans) in 2Q20 which reduced its CET1 ratio to 14%, but it has since rebuilt it to ~17-18%. Returns though have been lower due to thinner corporate margins, and we see greater NIM pressure on BBL than most peers from the turn in base rates. Disclosure from BBL is less than peers and credit costs rose again in FY25. However, we take comfort in BBL’s strong loss buffers and large corporate book. We also see a meaningful impact to the Thai economy from US tariffs, with ripple effects in the form of lower bank NIMs and continued high credit costs. We have it on Market perform as its recent longer dated issues trade at fair levels.
Recommendation Reviewed: January 22, 2026
Recommendation Changed: December 03, 2025
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines