DJ Metro Bank Holdings PLC: Interim results for half year ended 30 June 2025
Metro Bank Holdings PLC (MTRO)
Metro Bank Holdings PLC: Interim results for half year ended 30 June 2025
06-Aug-2025 / 07:00 GMT/BST
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Metro Bank Holdings PLC
Interim results
Trading update H1 2025
6 August 2025
Metro Bank Holdings PLC (LSE: MTRO LN) ("Metro Bank")
Legal Entity Identifier: 984500CDDEAD6C2EDQ64
Interim results for half year ended 30 June 2025
Strategic actions drive strong financial performance
-- Underlying profit before tax of GBP45 million in H1 2025 - more than treble the profit in H2 2024
-- Revenue up 22% year-on-year to GBP286 million
-- Operating costs down 8% year-on-year
-- Exit Net Interest Margin at June 2025 of 2.95%, up 117 bps year-on-year
-- Exit Cost of Deposits, at 1.02%, the lowest of any UK high street bank
-- Record GBP1 billion of new corporate/ commercial/SME lending in H1 2025, twice the lending originated in H1 2024,
with a GBP800 million credit approved pipeline for H2 2025
-- Future benefit expected from changes to MREL regime
Daniel Frumkin, Chief Executive Officer at Metro Bank, said:
"Metro Bank's strong performance in the first half of the year reflects the successful execution of our strategy and
decisive actions we have taken. We trebled profits, doubled new lending to corporate, commercial and SME customers,
meaningfully reduced operating costs and optimised funding to have the lowest cost of deposits of any UK high street
bank.
As we celebrate our 15-year anniversary, our unique relationship-led model, specialist lending expertise and expanding
store network allows us to support customers, communities and help businesses to grow. This differentiates Metro Bank
and fuels our growth.
Looking ahead, we have a clear path to growth, delivering mid-to-upper teens RoTE by 2027, with cost of deposits and
operating costs both already below levels needed to meet 2027 targets. We are confident in reconfirming guidance, as
the actions we have already taken continue to build momentum to 2027 and beyond."
Key Financials
H1 H2 Change from H1 Change from
GBP in millions 2025 2024 H2 2024 2024 H1 2024
Assets 16,428 GBP17,582 (7%) GBP21,489 (24%)
Loans 8,715 GBP9,013 (3%) GBP11,543 (24%)
Deposits 13,363 GBP14,458 (8%) GBP15,726 (15%)
Loan to deposit ratio 65% 62% 3pp 73% (8pp)
CET1 capital ratio 12.8% 12.5% 30bps 12.9% (10bps)
Total capital ratio (TCR) 18.9% 14.9% 400bps 15.0% 390bps
MREL ratio 27.0% 23.0% 400bps 22.2% 480bps
Liquidity coverage ratio 315% 337% (22pp) 365% (50pp)
H1 H2 Change from H1 Change from
GBP in millions 2025 2024 H2 2024 2024 H1 2024
Total underlying revenue1 GBP286.1 GBP269.5 6% GBP234.0 22%
Underlying profit/(loss) before tax2 GBP45.1 GBP12.8 252% (GBP26.8) 268%
Statutory profit/(loss) before tax GBP43.1 (GBP178.6) (124%) (GBP33.5) (>200%)
Statutory profit/(loss) after tax3 GBP30.4 GBP75.6 (60%) (GBP33.1) (>100%)
Net interest margin 2.87% 2.22% 65bps 1.64% 123bps
Lending yield 5.67% 5.48% 19bps 5.18% 49bps
Cost of deposits 1.16% 1.72% (56bps) 2.18% (102bps)
Cost of risk 0.14% 0.01% 13bps 0.10% 4bps
Earnings per share 4.5p 11.2p (6.7p) (4.9p) 9.4p
Book value per share GBP2.17 GBP1.76 GBP0.41 GBP1.64 GBP0.53
Tangible net asset value per share GBP1.61 GBP1.57 GBP0.04 GBP1.38 GBP0.24
1. Underlying revenue excludes grant income recognised relating to the Capability & Innovation fund 2. Underlying loss before tax is an alternative performance measure and excludes impairment and write-off of property,
plant & equipment (PPE) and intangible assets, transformation costs, remediation costs, net profit/(loss) on
portfolio sales and costs associated with capital raise 3. H2 2024 profit after tax reflects recognition of Deferred Tax Asset in the period
Investor presentation
A presentation for investors and analysts will be held at 9AM (UK time) on 6 August 2025. The presentation will be webcast on:
https://webcast.openbriefing.com/metro-h125/
For those wishing to dial-in:
From the UK dial: +44 800 189 0158
From the US dial: +1 855 979 6654
Access code: 289883
Other global dial-in numbers: https://www.netroadshow.com/events/global-numbers?confId=67110
Financial performance for the half year ended 30 June 2025
Deposits
H1 H2 Change from H1 Change from
GBP in millions
2025 2024 H2 2024 2024 H1 2024
Demand: current accounts GBP5,682 GBP5,791 (2%) GBP5,662 0%
Demand: savings accounts GBP6,991 GBP7,534 (7%) GBP8,108 (14%)
Fixed term: savings accounts GBP690 GBP1,133 (39%) GBP1,956 (65%)
Deposits from customers GBP13,363 GBP14,458 (8%) GBP15,726 (15%)
Deposits from customers includes:
Retail customers (excluding retail partnerships) GBP5,000 GBP5,968 (16%) GBP7,170 (30%)
SMEs4 GBP4,492 GBP4,442 1% GBP4,224 6%
GBP9,492 GBP10,410 (9%) GBP11,394 (17%)
Retail partnerships GBP1,913 GBP1,785 7% GBP1,734 10%
Commercial customers (excluding SMEs4) GBP1,958 GBP2,263 (13%) GBP2,598 (25%)
GBP3,871 GBP4,048 (4%) GBP4,332 (11%)
4. SME defined as enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR50
million, and/or an annual balance sheet total not exceeding EUR43 million and have aggregate deposits less than EUR1
million.
-- Excess liquidity has been successfully managed down, with high-cost fixed term deposits now comprising just 5% of
the book, down 39% half-on-half. Total customer deposits ended H1 2025 at GBP13.4 billion (H2 2024: GBP14.5 billion,
H1 2024: GBP15.7 billion). The core customer deposit base continues to be predominantly Retail and SME.
-- Cost of deposits for H1 2025 was 1.16%, with an exit cost of deposits at June 2025 of 1.02%- the lowest of any UK
high street bank. Cost of deposits are already below the level needed to meet 2027 guidance.
-- Stores remain a key element to the Group's service offering and strategy, as an enabler of our relationship-based
approach. Metro Bank opened a new store in Chester in July 2025, and two new stores are set to open in Gateshead
and Salford later in 2025, with all locations selected to support both local consumers and our growing corporate,
commercial and SME banking offer and local communities.
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