3 big PH banks keep investment grade

Moody's Ratings has affirmed the investment-grade credit ratings of three of the Philippines' largest banks-BDO Unibank Inc., Bank of the Philippine Islands (BPI), and Metropolitan Bank & Trust Co. (Metrobank)-on the back of their solid capital positions, stable profitability, and strong liquidity, despite challenges from rising consumer loan exposure and shifts in funding structures.

- BY DERCO ROSAL

Moody's kept its Baa2/P-2 ratings for BDO Unibank unchanged, including the bank's senior unsecured debt and medium-term note program. Ratings for BDO's foreign currency debt were also maintained.

According to Moody's, the affirmation “reflects the bank’s stable asset quality and strong credit underwriting despite its high consumer loan growth over the past [three] years. At the same time, the affirmation reflects the bank’s robust funding and liquidity, good profitability and adequate capital.”

BDO’s asset quality remained stable despite rapid consumer loan growth from 2022 to 2024, with its problem loan ratio steady at 1.9 percent by end-2024. Strong underwriting and a solid depositor base help manage risks, while its 148-percent loan coverage remains among the highest locally.