PH_MBT: Q2 2026 profit barely grew even as net interest income rose 13.3%

On 25 August PH_MBT released its Q2 2026 results. Net interest income came in at PHP 41,131 mn, up 13.3% year on year, operating profit at PHP 19,832 mn, and net profit at PHP 12,401 mn, down 1.5% from a year earlier. Profit remains under pressure: its share of net interest income fell to 30.2% from 34.7% a year ago. In our view, the share looks attractive: a 7.93% dividend yield and the portal model's +17% upside outweigh the weak profit dynamics.

Key takeaways

— Net interest income rose 13.3% year on year to PHP 41,131 mn – the best quarterly result in eight quarters

— Net profit fell 1.5% year on year to PHP 12,401 mn, and its share of net interest income dropped to 30.2% from 34.7%

— Operating profit was almost flat: PHP 19,832 mn versus PHP 20,267 mn a year earlier, as revenue growth was eaten up by costs

— A 7.93% dividend yield and the portal model's +17% upside support the share's attractiveness

— Return on equity of 11.99% and a P/E of 9.26 are moderate metrics for the banking sector

Attractiveness

Key figures, PHP bn

Net interest income rose 13.3% year on year to PHP 41,131 mn – the best quarterly result in eight quarters

In Q2 2026, PH_MBT's net interest income reached PHP 41,131 mn, up 13.3% from Q2 2025 (PHP 36,293 mn). This is the highest quarterly figure in eight quarters – since Q3 2024, when it stood at PHP 37,325 mn.

Net interest income growth accelerated: in Q1 2026 it added 6.4% year on year, while in Q2 it reached 13.3%. This is the best dynamics since Q4 2025, when growth was 32.4% (but that was driven by a low base in Q4 2024).

The acceleration in net interest income is the main positive of the report. It suggests the bank is expanding its earning assets or improving their yield. However, without data on interest expenses and asset volumes, the source of this growth remains undisclosed.

Net profit fell 1.5% year on year to PHP 12,401 mn, and its share of net interest income dropped to 30.2% from 34.7%

Net profit in Q2 2026 was PHP 12,401 mn, down 1.5% from Q2 2025 (PHP 12,593 mn). This decline, despite a 13.3% rise in net interest income, means that expenses or provisions grew faster than revenue.

The share of profit in net interest income fell to 30.2% from 34.7% a year earlier. This is not a margin or a profitability ratio, but simply the relationship between two figures; it shows that a growing portion of net interest income is absorbed by operating expenses, provisions, or taxes.

Profit over the last twelve months (LTM) stood at PHP 30,687 mn. This is below the sum of the four quarters since mid-2025, confirming pressure on profitability in recent months.

Operating profit was almost flat: PHP 19,832 mn versus PHP 20,267 mn a year earlier, as revenue growth was eaten up by costs

Operating profit in Q2 2026 was PHP 19,832 mn, down 2.1% from Q2 2025 (PHP 20,267 mn). With net interest income up 13.3%, this means operating expenses grew even faster.

The decline in operating profit amid revenue growth points to rising costs. Without a breakdown of expenses in the report, it is impossible to say exactly which items increased, but the overall picture is clear: business growth is not yet converting into profit growth.

In Q1 2026, operating profit also declined – to PHP 19,360 mn from PHP 18,803 mn a year earlier (up 3.0%). Thus, in Q2 the dynamics worsened: from 3.0% growth to a 2.1% decline.

A 7.93% dividend yield and the portal model's +17% upside support the share's attractiveness

PH_MBT's dividend yield over the last twelve months is 7.93%. This is above the yield on most bank deposits and many debt instruments, making the share attractive for income-oriented investors.

According to the portal model, the share trades at a discount to fair value: the upside potential is estimated at +17%. This estimate is based on comparing return on equity (11.99%) with the current price-to-book ratio.

The current P/E over the last twelve months is 9.26. This is a moderate level that does not look overheated, especially given the dividend yield. However, a full comparison with history would require the average P/E over the last three years, which is not in the facts.

Return on equity of 11.99% and a P/E of 9.26 are moderate metrics for the banking sector

PH_MBT's return on equity is 11.99%. This is a moderate figure, indicating that the bank generates profit but does not demonstrate outstanding efficiency. For comparison, many large banks in the region have ROE above 15%.

The P/E over the last twelve months is 9.26. This means investors pay about 9.3 annual earnings for the share. Such a level can be attractive if profit grows, but the current profit dynamics (down 1.5% year on year) do not provide grounds for rapid growth.

The combination of ROE 11.99% and P/E 9.26 gives a P/B ratio of about 1.1 (calculated: 9.26 * 11.99% = 1.11). This is close to book value, which limits the potential for further valuation decline but also does not create a significant margin for growth.

Valuation on the latest reported figures

Bottom line

Bottom line: PH_MBT showed strong growth in net interest income (up 13.3% year on year to PHP 41,131 mn), but this did not translate into profit growth – net profit fell 1.5%, and its share of net interest income dropped to 30.2%. Operating profit also declined by 2.1%, indicating cost pressure. Nevertheless, a 7.93% dividend yield and the portal model's +17% upside make the share attractive for income-oriented investors. The key question for a holder is whether the bank can sustain revenue growth and return profit to growth next quarter, or whether margin pressure will persist.