Metropolitan Bank Holding (MCB) just closed out FY 2025 with Q4 revenue of US$85.6 million and basic EPS of US$2.83, supported by net income of US$28.9 million. Over the past year, revenue has ranged from US$56.0 million to US$85.6 million per quarter while quarterly EPS moved between US$0.68 and US$2.83. This gives you a clear view of how the top line and EPS have tracked together through FY 2025. With a trailing net interest margin at 3.88% and a net profit margin of 25.6% for the last twelve months, this set of results puts the focus squarely on how sustainable the current level of profitability really is.

See our full analysis for Metropolitan Bank Holding.

With the latest numbers on the table, the next step is to line them up against the widely followed narratives around MCB to see which stories hold up and which ones the new results call into question.

Loan book reaches US$6.8b with higher non performing balances

• Total loans sit at US$6.8b at Q4 2025, while non performing loans are US$86.9 million, up from US$34.5 million at the start of FY 2025.
• Critics highlight that a bank focused on commercial and real estate lending can face pressure when problem loans rise, and the step up in non performing loans from US$39.9 million in Q2 2025 to US$86.9 million by Q4 2025 brings that risk into clearer view.
  • This shift means a larger slice of the US$6.8b loan book is not currently paying as expected, which can eventually affect provisions and profitability if it persists.
  • Bears argue that when asset quality moves this way, it can weigh on how investors view the sustainability of recent profit levels, even with strong reported net income of US$28.9 million in Q4 2025.

Margins and costs show mixed signals

• The trailing 12 month net interest margin is 3.88% with a cost to income ratio of 55.9%, while Q4 2025 quarterly data shows a higher 4.1% margin and a lower 50.2% cost to income ratio.
• What stands out for a bullish view is that profitability metrics like a 25.6% trailing net profit margin and a 3.88% trailing net interest margin support the idea of an efficient franchise. However, the move from a 62.68% cost to income ratio a year ago to 55.9% now sits alongside rising non performing loans.
  • Bulls point to the combination of a 25.6% net profit margin and Q4 2025 net income of US$28.9 million as evidence that the bank is converting revenue into profit effectively.
  • At the same time, the increase in non performing loans from US$32.6 million at Q4 2024 to US$86.9 million at Q4 2025 gives bears a concrete data point to question how long these margins and cost ratios can stay at current levels.

Valuation sits below DCF fair value

• The current share price of US$90.71 is below the DCF fair value of about US$155.01, and the P/E of 12.9x is below a 22.9x peer average but slightly above the 11.8x US Banks industry average.
• Supporters of a bullish stance argue that trailing 12 month earnings growth of 5.8% per year, last year's 6.6% earnings growth, and forecasts for around 23.1% yearly earnings growth and 17% yearly revenue growth help explain why the shares trade below the DCF fair value. Skeptics point out that the valuation gap also relies on those growth forecasts playing out.
  • The combination of a 25.6% net profit margin and US$71.1 million of trailing 12 month net income provides the earnings base that bulls use to justify attention to the 41.5% discount to DCF fair value.
  • Bears counter that the P/E being only modestly above the 11.8x industry average, despite stronger forecast growth, reflects concerns tied to loan quality trends and the need to meet those higher growth expectations.

To see how these numbers could reshape the longer term story for profitability, growth, and loan quality, check out the full market narrative on MCB and how different investors are reading the same data. 📊 Read the full Metropolitan Bank Holding Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Metropolitan Bank Holding's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Rising non performing loans against a US$6.8b loan book and questions around how long current margins can hold suggest some investors may worry about balance sheet resilience.

If you want ideas where asset quality and funding strength are more of a starting point than a concern, check out our CTA_SCREENER_SOLID_BALANCE_SHEET to focus on companies with sturdier financial foundations built to handle stress.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.