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.
Loans
H1 H2 Change from H1 Change from
GBP in millions
2025 2024 H2 2024 2024 H1 2024
Gross loans and advances to customers GBP8,882 GBP9,204 (3%) GBP11,739 (24%)
Less: allowance for impairment (GBP167) (GBP191) (13%) (GBP196) (15%)
Net loans and advances to customers GBP8,715 GBP9,013 (3%) GBP11,543 (24%)
Gross loans and advances to customers
consists of:
Commercial lending5 GBP3,083 GBP2,661 16% GBP2,437 27%
Specialist Mortgages lending GBP1,247 GBP700 78% - -
Target segments GBP4,330 GBP3,361 29% GBP2,437 78%
Government-backed lending6 GBP514 GBP653 (21%) GBP787 (35%)
Consumer lending GBP133 GBP745 (82%) GBP1,003 (87%)
Prime Mortgages lending GBP3,905 GBP4,445 (12%) GBP7,512 (48%)
Total run-off books GBP4,552 GBP5,843 (22%) GBP9,302 (51%)
5. Includes CLBILS.
6. BBLS, CBILS and RLS.
-- Balances in the Group's target lending segments of corporate, commercial and SME, and specialist mortgage lending
grew by 29% half-on-half, and 78% year-on-year, to GBP4.3 billion. Together with legacy books in run-off, which at H1
2025 totalled GBP4.6 billion, total gross loans at H1 2025 were GBP8.9 billion. Total net loans at H1 2025 were GBP8.7
billion.
-- Loan to deposit ratio at H1 2025 was 65%, providing further capacity for growth.
-- Commercial loans (excluding BBLS, CBILS and RLS) increased by 16% at H1 2025 to GBP3.1 billion (H2 2024: GBP2.7
billion, H1 2024: GBP2.4 billion) following GBP1 billion of new gross lending in H1 2025- a Metro Bank record. Growth
in new corporate, commercial and SME lending continues to be offset by attrition, particularly in commercial real
estate and portfolio buy-to-let. The DTV of the portfolio at H1 2025 was 59% (H2 2024: 56%, H1 2024: 57%) and the
portfolio has a coverage ratio of 2.09% (H2 2024: 1.98%, H1 2024: 2.08%).
-- Specialist Mortgages increased by 78% half-on-half to GBP1.2 billion. Together with the Prime Mortgage book in
run-off, total Retail mortgages were GBP5.2 billion at H1 2025, and remain the largest component of the lending book
at 58% (H2 2024: 56%, H1 2024: 64%). The Debt to Value (DTV) of the portfolio at H1 2025 was 60% (H2 2024: 59%, H1
2024: 61%). Metro Bank's operating model is tailored to more complex underwriting which enables the Group to meet
the needs of more customers and scale underserved markets whilst offering improved risk-adjusted returns.
-- Cost of risk for H1 2025 remained low, at 0.14% (H2 2024: 0.01%, H1 2024: 0.10%). The credit quality of new lending
continues to be strong and the Group retains its prudent approach to provisioning.
-- Overall arrears rates have improved and non-performing loans have reduced. Arrears levels have decreased to 4.9% at
H1 2025 (H2 2024: 5.6%, H1 2024: 3.8%) and non-performing loans have reduced to 5.42% at H1 2025 (H2 2024: 5.48%,
H1 2024: 3.75%).
-- The loan portfolio remains highly collateralised and prudently provisioned. The ECL provision at H1 2025 was GBP167
million with a coverage ratio of 1.88%. The level of post-model overlays currently sits at GBP23 million or 14% of
the ECL stock, up from 10% at H2 2024.
Profit and Loss Account
-- Underlying profit before tax of GBP45 million in H1 2025 is more than treble H2 2024, driven by improvements in net interest income and continued cost reduction (H2 2024: profit GBP13 million, H1 2024: loss GBP27 million). -- Underlying costs reduced 8% half-on-half, to GBP235 million (H2 2024: GBP256 million, H1 2024: GBP255 million). -- Net interest margin for H1 2025 was 2.87% (H2 2024: 2.22%, H1 2024: 1.64%), with an exit net interest margin of 2.95% already nearing guidance of 3.00%-3.25% by December 2025. Structural improvements to net interest margin reflect lower cost of deposits and increased asset yields. -- Underlying net interest income increased by 8% half-on-half to GBP223 million (H2 2024: GBP206 million, H1 2024: GBP172 million), reflecting the continued transition towards higher yielding assets and a reduction in cost of deposits. -- Underlying net fee and other income has remained flat half-on-half at GBP63 million (H2 2024: GBP63 million, H1 2024: GBP62 million). -- Expected credit loss expense was GBP6 million for H1 2025 (H2 2024: GBP1 million, H1 2024: GBP6 million) reflecting a continued benign credit environment. -- Statutory profit before tax of GBP43 million for the half-year ended 30 June 2025 (H2 2024: loss of GBP179 million, H1 2024: loss of GBP34 million). Statutory profit after tax for the half was GBP30 million (H2 2024: GBP76 million (following GBP254 million Deferred Tax Asset recognition), H1 2024: loss of GBP33 million).
Capital, Funding and Liquidity
Minimum Minimum
Position Position
requirement requirement
H1 2025 H2 2024
including buffers7 excluding buffers7
Common Equity Tier 1 (CET1) 12.8% 12.5% 9.7% 5.2%
Tier 1 16.6% 12.5% 11.4% 6.9%
Total Capital 18.9% 14.9% 13.7% 9.2%
Total Capital + MREL 27.0% 23.0% 22.9% 18.4%
Risk Weighted Assets (GBP million) 6,437 6,442 - -
7. CRD IV buffers
-- Capital position now optimised for growth following the GBP250 million AT1 securities issuance and completion of GBP584
million unsecured personal loan portfolio sale in H1 2025.
-- Metro Bank's MREL ratio at H1 2025 was 27.0% a 400bps improvement half-on-half (H2 2024: 23.0%, H1 2024: 22.2%) and
410bps above regulatory minimum requirements (including buffers).
-- The Bank remains focused on optimising risk-adjusted returns on regulatory capital.
-- Total RWAs remained flat half-on-half at GBP6.4 billion (H2 2024: GBP6.4 billion), reflecting the GBP584 million sale of
the unsecured personal loans portfolio.
-- RWA density at H1 2025 was 39% compared to 37% at H2 2024 reflecting the continued pivot to corporate, commercial
and SME lending.
-- Future benefits are expected from recently announced changes in Bank of England's revised Statement of Policy on
MREL. The Group expects to be reclassified as a transfer firm with MREL capital equal to minimum capital
requirements. Given this, there are no current plans to raise future MREL. The Group continues to review its
liability structure on an economic basis in the context of its ongoing regulatory and liquidity needs.
-- Strong liquidity and funding position maintained. All customer loans are fully funded by customer deposits. Loan to
deposit ratio at H1 2025 was 65%.
-- Liquidity Coverage Ratio (LCR) at H1 2025 was 315% (H2 2024: 337%, H1 2024: 365%), with cash balances in excess of
GBP2 billion.
-- Net Stable Funding Ratio (NSFR) at H1 2025 was 165% (H2 2024: 169%, H1 2024: 153%).
-- The Treasury portfolio of GBP6.4 billion includes GBP4.0 billion of investment securities, of which 80% are rated AAA
and 20% are rated AA. Of the total investment securities, 93% is held at amortised cost and 7% is held at fair
value through other comprehensive income.
-- Over the next 2.5 years approximately GBP1.5 billion of fixed rate treasury assets will mature at an average blended
yield of just over 1%. These will be replaced by asset with yields in line with or greater than the prevailing base
rate.
Existing guidance reconfirmed
ROTE -- Mid-to-upper single digit in 2025, double-digit in 2026 and mid-to-upper teens thereafter
NIM -- Continued NIM expansion driven by asset rotation, and exit NIMs in 2025, 2026 and 2027 to be
between 3.00%-3.25%, 3.60%-4.00% and 4.00%-4.50%, respectively
Costs -- Year-on-year 4-5% reduction in cost for 2025
-- Cost to income ratios in 2026, 2027 and 2028 to be between 75%-70%, 65%-60% and 55%-50%
respectively
Metro Bank Holdings PLC
Summary Balance Sheet and Profit & Loss Account
(Unaudited)
Balance Sheet HoH H1 H2 H1
GBP in millions change 2025 2024 2024
Assets
Loans and advances to customers (3%) GBP8,715 GBP9,013 GBP11,543
Treasury assets8 (13%) GBP6,386 GBP7,301 GBP8,819
Other assets9 5% GBP1,327 GBP1,268 GBP1,127
Total assets (7%) GBP16,428 GBP17,582 GBP21,489
Liabilities
Deposits from customers (8%) GBP13,363 GBP14,458 GBP15,726
Deposits from central banks - GBP400 GBP400 GBP3,050
Debt securities 1% GBP685 GBP675 GBP675
Other liabilities (40%) GBP522 GBP866 GBP934
Total liabilities (9%) GBP14,970 GBP16,399 GBP20,385
Total shareholder's equity 23% GBP1,458 GBP1,183 GBP1,104
Total equity and liabilities (7%) GBP16,428 GBP17,582 GBP21,489
8. Comprises investment securities and cash & balances with the Bank of England. 9. Comprises property, plant & equipment, intangible assets and other assets.
Profit & Loss Account HoH H1 H2 H1
GBP in millions change 2025 2024 2024
Underlying net interest income 8% GBP222.9 GBP206.0 GBP171.9
Underlying net fee and other income 0% GBP63.4 GBP63.4 GBP62.0
Underlying net gains on sale of assets (>100%) (GBP0.2) GBP0.1 GBP0.1
Total underlying revenue 6% GBP286.1 GBP269.5 GBP234.0
Underlying operating costs (8%) (GBP234.7) (GBP255.8) (GBP254.6)
Expected credit loss expense >100% (GBP6.3) (GBP0.9) (GBP6.2)
Underlying profit/(loss) before tax >100% GBP45.1 GBP12.8 (GBP26.8)
Impairment and write-off of property plant & equipment and
intangible assets
(GBP0.1) (GBP43.7) (GBP0.3)
Transformation costs (GBP7.8) (GBP26.6) (GBP4.5)
Remediation costs GBP0.4 (GBP19.5) (GBP1.8)
Portfolio sale GBP5.5 (GBP101.6) -
Capital raise and refinancing - - (GBP0.1)
Statutory profit/(loss) before tax >100% GBP43.1 (GBP178.6) (GBP33.5)
Statutory taxation (GBP12.7) GBP254.2 GBP0.4
Statutory profit/(loss) after tax (60%) GBP30.4 GBP75.6 (GBP33.1)
H1 H2 H1
Key metrics
2025 2024 2024
Earnings per share 4.5p 11.2p (4.9p)
Average weighted number of basic ordinary shares in issue 673.0m 672.9m 672.7m
Net interest margin (NIM) 2.87% 2.22% 1.64%
Lending yield 5.67% 5.48% 5.18%
Cost of deposits 1.16% 1.72% 2.18%
Cost of risk 0.14% 0.01% 0.10%
Arrears rate 4.9% 5.6% 3.8%
Underlying cost: income ratio 82% 95% 109%
Book value per share GBP2.17 GBP1.76 GBP1.64
Tangible net asset value per share GBP1.61 GBP1.57 GBP1.38
Risk weighted assets (RWAs) GBP6,437m GBP6,442m GBP7,239m
Risk weight density (RWAs / total assets) 39% 37% 36%
Loan to deposit ratio 65% 62% 73%
Enquiries
For more information, please contact:
Metro Bank PLC Investor Relations
Stella Gavaletakis/ Daniel Ainscough
+44 (0) 20 3402 8900
IR@metrobank.plc.uk
Metro Bank PLC Media Relations
Victoria Gregory
+44 (0) 7773 244608
pressoffice@metrobank.plc.uk
FGS Global
Mike Turner
+44 (0) 7766 360900
Metrobank-lon@fgsglobal.com
ENDS
About Metro Bank
Metro Bank provides corporate, commercial and SME banking and specialist mortgage lending, alongside retail and private banking services. Metro Bank offers relationship banking through a network of 76 stores in the UK, telephone banking from UK-based contact centres and digital banking via mobile app and online.
Metro Bank Holdings PLC (registered in England and Wales with company number 14387040, registered office: One Southampton Row, London, WC1B 5HA) is the listed entity and holding company of the Metro Bank group.
Metro Bank PLC (registered in England and Wales with company number 6419578, registered office: One Southampton Row, London, WC1B 5HA) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. 'Metrobank' is a registered trademark of Metro Bank PLC. Eligible deposits are protected by the Financial Services Compensation Scheme. For further information about the Scheme, refer to www.fscs.org.uk.
Metro Bank is an independent UK bank - it is not affiliated with any other bank or organisation. Please refer to Metro Bank using the full name.
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ISIN: GB00BMX3W479
Category Code: IR
TIDM: MTRO
LEI Code: 984500CDDEAD6C2EDQ64
OAM Categories: 1.2. Half yearly financial reports and audit reports/limited reviews
3.1. Additional regulated information required to be disclosed under the laws of a Member State
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EQS News ID: 2179956
End of Announcement EQS News Service
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