DJ Metro Bank Holdings PLC: Results for the year ended 31 December 2025 -2-
approach. Metro Bank opened three new stores in 2025, in line with our plan - Chester, Salford and Gateshead, with new leases signed in Newcastle and Leeds. All locations were selected to support our growing corporate, commercial and SME banking offer and local communities.
Loans
FY FY Change from H1 Change from
GBP in millions
2025 2024 FY 2024 2025 H1 2025
Gross loans and advances to customers GBP8,993 GBP9,204 (2%) GBP8,882 1%
Less: allowance for impairment (GBP170) (GBP191) (11%) (GBP167) 2%
Net loans and advances to customers GBP8,823 GBP9,013 (2%) GBP8,715 1%
Gross loans and advances to customers
consists of:
Commercial lending6 GBP3,570 GBP2,661 34% GBP3,083 16%
Specialist Mortgages lending GBP1,657 GBP700 137% GBP1,247 33%
Target segments GBP5,227 GBP3,361 56% GBP4,330 21%
Government-backed lending7 GBP369 GBP653 (43%) GBP514 (28%)
Consumer lending GBP114 GBP745 (85%) GBP133 (14%)
Prime Mortgages lending GBP3,283 GBP4,445 (26%) GBP3,905 (16%)
Total run-off books GBP3,766 GBP5,843 (36%) GBP4,552 (17%)
6. Includes corporate, commercial, SME and CLBILS.
7. BBLS, CBILS and RLS.
-- Balances in the Group's target lending segments of corporate, commercial and SME, and specialist mortgages grew by
56% year-on-year, to GBP5.2 billion. Together with legacy books in run-off, which at FY 2025 totalled GBP3.8 billion,
total gross loans at FY 2025 were GBP9.0 billion. Total net loans at FY 2025 were GBP8.8 billion.
-- Loan to deposit ratio at FY 2025 was 66%, providing capacity for growth.
-- Commercial lending (excluding BBLS, CBILS and RLS) increased by 34% at FY 2025 to GBP3.6 billion (FY 2024: GBP2.7
billion) following GBP2 billion of new gross lending in FY 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 FY 2025 was 67% (FY 2024: 56%) and the portfolio has a coverage
ratio of 2.07% (FY 2024: 1.98%).
-- Specialist Mortgages increased by 137% year-on-year to GBP1.7 billion (FY 2024: GBP0.7 billion). Together with the
Prime Mortgage book in run-off, total retail mortgages were GBP4.9 billion at FY 2025 and remain the largest
component of the lending book at 55% (FY 2024: 56%). The Debt to Value (DTV) of the portfolio at FY 2025 was 60%
(FY 2024: 59%). 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 FY 2025 remained low, at 0.16% (FY 2024: 0.06%). 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 4.7% at
FY 2025 (FY 2024: 5.6%) and non-performing loans have reduced to 5.14% at FY 2025 (FY 2024: 5.48%).
-- The loan portfolio remains appropriately provisioned. The ECL provision at FY 2025 was GBP170 million with a coverage
ratio of 1.89%.
Profit and Loss Account
-- Underlying profit before tax of GBP98 million for FY 2025, the highest in Metro Bank's history, GBP112 million higher than FY 2024, driven by continued improvements in net interest income and further cost reductions (FY 2024: underlying loss of GBP14 million). -- Net interest margin for FY 2025 was 2.98% (FY 2024:1.91%), with an exit net interest margin of 3.17%, in line with guidance (FY 2024 Exit NIM: 2.65%). Structural improvements to net interest margin reflect lower cost of deposits and increased asset yields. -- Underlying net interest income increased by 22% year-on-year to GBP460 million (FY 2024: GBP378 million), reflecting the continued transition towards higher yielding assets and a reduction in cost of deposits. -- Underlying net fee and other income remained flat year-on-year at GBP125 million (FY 2024: GBP126 million). -- Underlying operating costs reduced 7% year-on-year, to GBP473 million- ahead of guidance (FY 2024: GBP510 million). -- Expected credit loss expense was GBP14 million for FY 2025 (FY 2024: GBP7 million) reflecting a continued benign credit environment. -- Statutory profit after tax for FY 2025 was GBP69.7 million (FY 2024: GBP42.5 million, following GBP255 million Deferred Tax Asset recognition).
Capital, Funding and Liquidity
At 31 December 2025 From 1 January 2026
Minimum Minimum Minimum Minimum
Position
requirement requirement requirement requirement
FY 20258
including buffers9 excluding buffers9 including buffers9 excluding buffers9
Common Equity Tier 1 (CET1) 12.5% 9.7% 5.2% 9.7% 5.2%
Tier 1 16.1% 11.4% 6.9% 11.4% 6.9%
Total Capital 18.4% 13.7% 9.2% 13.7% 9.2%
Total Capital plus MREL 26.1% 22.9% 18.4% 13.7% 9.2%
Risk Weighted Assets (GBP 6,711 - - - -
million)
8. Capital figures as at 31 December 2025 are presented on a proforma basis, including our profit for the year. The
profit will only be eligible to be included in our capital resources following the completion of our audit and
publication of our Annual Report and Accounts
9. CRD IV buffers
-- Capital position is well optimised for growth following the GBP250 million AT1 securities issuance and completion of
GBP584 million unsecured personal loan portfolio sale in 2025.
-- Effective 1 January 2026, the Group was reclassified as a Transfer firm under the MREL regime, with MREL set equal
to minimum capital requirements. The Group continues to review its liability structure on an economic basis in the
context of its ongoing regulatory and liquidity needs.
-- Metro Bank's Total Capital plus MREL ratio at FY 2025 was 26.1%, a 310bps improvement year-on-year (FY 2024:
23.0%), and 320bps above regulatory minimum requirements as at FY 2025 (including buffers).
-- The Bank remains focused on optimising risk-adjusted returns on regulatory capital.
-- Total RWAs increased year-on-year to GBP6.7 billion (FY 2024: GBP6.4 billion), reflecting continued asset rotation into
higher-density corporate, commercial and SME lending. RWA density at FY 2025 was 41% (FY 2024: 37%).
-- Strong liquidity and funding position maintained with all customer loans fully funded by customer deposits. Loan to
deposit ratio at FY 2025 was 66%.
-- Liquidity Coverage Ratio (LCR) at FY 2025 was 306% (FY 2024: 337%), with cash balances in excess of GBP2 billion.
-- Net Stable Funding Ratio (NSFR) at FY 2025 was 161% (FY 2024: 169%).
-- The Treasury portfolio of GBP6.3 billion includes GBP4.2 billion of investment securities, of which 75% are rated AAA
and 25% are rated AA. Of the total investment securities, 95% is held at amortised cost and 5% is held at fair
value through other comprehensive income.
-- Over the next 2 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.
Guidance
RoTE -- RoTE to be 13% or greater in Q4 2026, 15% or greater for 2027, and 18% or greater for 2028
NIM -- Exit NIMs to be between 3.40-4.00% for 2026 and 3.75%-4.50% for 2027
Costs -- Cost income ratio to be between 75-70% for 2026, 65-65% for 2027, and 55-50% for 2028
-- Costs for 2026 flat versus 2025
Metro Bank Holdings PLC
Summary Balance Sheet and Profit & Loss Account
(Unaudited)
Balance Sheet YoY FY H1 FY GBP in millions change 2025 2025 2024 Assets Loans and advances to customers (2%) GBP8,823 GBP8,715 GBP9,013 Treasury assets10 (13%) GBP6,345 GBP6,386 GBP7,301 Other assets11 3% GBP1,307 GBP1,327 GBP1,268 Total assets (6%) GBP16,475 GBP16,428 GBP17,582 Liabilities Deposits from customers (7%) GBP13,445 GBP13,363 GBP14,458 Deposits from central banks - GBP400 GBP400 GBP400 Debt securities 1% GBP684 GBP685 GBP675 Other liabilities (47%) GBP462 GBP522 GBP866 Total liabilities (9%) GBP14,991 GBP14,970 GBP16,399 Total equity 25% GBP1,484 GBP1,458 GBP1,183 Total equity and liabilities (6%) GBP16,475 GBP16,428 GBP17,582
10. Comprises investment securities and cash & balances with the Bank of England. 11. Comprises property, plant & equipment, intangible assets and other assets.
Profit & Loss Account YoY FY FY
GBP in millions change 2025 2024
Underlying net interest income 22% GBP460.3 GBP377.9
Underlying net fee and other income (1%) GBP124.8 GBP125.6
Underlying net gain on sale of assets GBP0.0 GBP0.0
Total underlying revenue 16% GBP585.1 GBP503.5
Underlying operating costs (7%) (GBP472.7) (GBP510.4)
Expected credit loss expense 101% (GBP14.3) (GBP7.1)
Underlying profit/(loss) before tax >100% GBP98.1 (GBP14.0)
Impairment and write-off of property plant & equipment and intangible assets (GBP0.7) (GBP44.0)
Transformation costs (GBP14.4) (GBP31.1)
Remediation costs (GBP1.2) (GBP21.3)
Portfolio sales GBP5.4 (GBP101.6)
Cost associated with capital raise - (GBP0.1)
Statutory profit/(loss) before tax >100% GBP87.2 (GBP212.1)
Statutory taxation >(100)% (GBP17.5) GBP254.6
Statutory profit after tax 64% GBP69.7 GBP42.5
FY FY
Key metrics
2025 2024
Earnings per share 7.8p 6.3p
Net interest margin (NIM) 2.98% 1.91%
Lending yield 5.69% 5.33%
Cost of deposits 1.06% 1.95%
Cost of risk 0.16% 0.06%
Arrears rate 4.7% 5.6%
Underlying cost: income ratio 81% 101%
Book value per share GBP2.20 GBP1.76
Tangible net asset value per share GBP1.63 GBP1.57
Risk weighted assets (RWAs) GBP6,711 GBP6,442
Risk weight density (RWAs / total assets) 41% 37%
Loan to deposit ratio 66% 62%
Half year ended
HoH 31 Dec 30 Jun 31 Dec
Profit & Loss Account
change 2025 2025 2024
GBP'million GBP'million GBP'million
Underlying net interest income 7% GBP237.4 GBP222.9 GBP206.0
Underlying net fee and other income (3%) GBP61.4 GBP63.4 GBP63.4
Underlying net gains on sale of assets (183%) GBP0.2 (GBP0.2) GBP0.1
Total underlying revenue 5% GBP299.0 GBP286.1 GBP269.5
Underlying operating costs 1% (GBP238.0) (GBP234.7) (GBP255.8)
Expected credit loss expense 22% (GBP8.0) (GBP6.3) (GBP0.9)
Underlying profit before tax 18% GBP53.0 GBP45.1 GBP12.8
Impairment and write-off of property plant & equipment and intangible
assets
(GBP0.6) (GBP0.1) (GBP43.7)
Transformation costs (GBP6.7) (GBP7.8) (GBP26.6)
Remediation costs (GBP1.6) GBP0.4 (GBP19.5)
Portfolio sales - GBP5.5 (GBP101.6)
Statutory profit/(loss) before tax 2% GBP44.1 GBP43.1 (GBP178.6)
Statutory taxation (62%) (GBP4.8) (GBP12.7) GBP254.2
Statutory profit after tax 29% GBP39.3 GBP30.4 GBP75.6
H2 H1 H2
Key metrics
2025 2025 2024
Earnings per share 3.3p 4.5p 1.9p
Net interest margin (NIM) 3.10% 2.87% 2.22%
Lending yield 5.71% 5.67% 5.48%
Cost of deposits 0.96% 1.16% 1.72%
Cost of risk 0.18% 0.14% 0.01%
Arrears rate 4.7% 4.9% 5.6%
Underlying cost: income ratio 80% 82% 95%
Book value per share GBP2.20 GBP2.17 GBP1.76
Tangible net asset value per share GBP1.63 GBP1.61 GBP1.57
Risk weighted assets (RWAs) GBP6,711m GBP6,437m GBP6,442m
Risk weight density (RWAs / total assets) 41% 39% 37%
Loan to deposit ratio 66% 65% 62%
Enquiries
For more information, please contact:
Metro Bank PLC Investor Relations
Daniel Ainscough/Stella Gavaletakis
+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 78 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.
Metro Bank Holdings PLC
Preliminary Announcement
(Unaudited)
For the year ended 31 December 2025
Chief Executive Officer's statement
2025 has been a year of strong growth with successful operational delivery, culminating in an underlying profit for the year of GBP98 million, the highest in Metro Bank's history. We have seen a 22% increase in Net Interest income driving 16% in Revenue increase. We have beat cost guidance (7% reductions versus 4-5% guidance) and delivered on all our other guidance.
Our local, relationship-led service model is a unique structural advantage which positions the bank to deliver best-in-class risk adjusted returns. As we celebrated our 15-year anniversary in 2025, our unwavering commitment to relationship banking is what sets us apart from other banks; deepening connections with customers, communities and increasing market share. We continue to grow our store network to continue to deliver for clients in person, while also improving customer experience through investing in AI and digital technology.
We continue our strategic shift to corporate, commercial, and SME lending, and specialist mortgages at pace. We delivered record growth in gross new lending in corporate, commercial and SME of GBP2 billion in 2025, almost twice the lending originated in 2024. Alongside this, we built a credit approved pipeline for corporate, commercial and SME of GBP800 million.
Alongside this record growth, we have maintained our focus on costs, delivering a 7% reduction year-on-year, ahead of guidance. Our strategic partnership with Infosys continues to enhance digital capabilities, improve automation, and embed further AI capabilities, allowing the bank to scale in an efficient manner.
As we focus on optimising the balance sheet and increasing returns, we have successfully managed down excess liquidity, particularly expensive fixed-term deposits (FTD), resulting in a cost of deposits that is now the lowest of any UK High Street bank. NIBLs remain double the market average and FTD/ cash ISAs comprise only one fifth of the market average, providing an enduring strategic advantage. We are also seeing increased deposit inflows from SME clients, deepening these valued relationships beyond the loan book.
We have optimised our capital position providing capacity for further growth following the GBP250 million Additional Tier 1 (AT1) securities issuance and completion of the GBP584 million unsecured personal loan portfolio sale in the first half of 2025. Both transactions were key milestones in our strategy to reposition the balance sheet, actively manage asset rotation and enhance risk-adjusted returns on capital.
Effective 1 January 2026, the Group was reclassified as a Transfer firm under the MREL regime, with MREL requirements set equal to minimum capital requirements providing further capacity for growth in corporate, commercial and SME lending, and specialist mortgages.
Momentum in the underlying franchise remains strong, giving us confidence to enhance RoTE guidance for 2026 as well as introducing new RoTE targets for 2028:
-- RoTE to be greater than 13% by Q4 2026, greater than 15% for 2027 and greater than 18% for 2028, one of the highest
of any UK High Street bank.
-- Continued NIM expansion driven by asset rotation and management of cost of deposits, with 2026 exit run-rate
expected to be between 3.40%-4.00% and 3.75%-4.50% in 2027, respectively. -- Continued cost discipline and control, with cost to income ratios for 2026, 2027 and 2028 to be between 75%-70%,
65%-60%, and 55%-50%, respectively.
Progress on strategic priorities
Revenue: Driving record new lending
We delivered record new lending growth of GBP2 billion in 2025, across our corporate, commercial and SME portfolios. This strong performance is further underscored by a credit approved pipeline of GBP800 million to date. Combined, this new lending and credit approved pipeline, are equal to all new originations in the last two years. Our relationship managers organically generated 88% of new Corporate lending, helping to maintain our strong asset quality. Portfolio remains highly collateralised and prudently provisioned. We remain focused on pricing discipline ensuring we maintained an average margin in excess of 350 bps over base rate, driving year-on-year improvements in yield.
There has been strong progress in specialist mortgage originations, with Metro Bank firmly established as a specialist mortgage provider of choice. We continue to enhance our specialist proposition and launched additional products (House in Multiple Occupancy "HMOs", Multi-Unit Freehold Blocks "MUFB" and affordability enhancements) in 2025.
We successfully managed down excess liquidity throughout 2025, in particular expensive fixed-term deposits, significantly lowering our cost of funding. An exit cost of deposits at December 2025 of 0.94% means Metro Bank has the lowest cost of deposits of any UK High Street bank. NIBLs remain double the market average, providing a lasting strategic advantage.
The combined impact of increased lending yields and a lower cost of deposits has resulted in an exit NIM of 3.17% in December 2025, in line with guidance. Overall revenue increased 16% year-on-year, despite 125 bps year-on-year reduction in Bank of England base rate and a meaningfully smaller balance sheet following the c.GBP584 million asset sale in the period. Strong revenue performance gives us confidence in our guidance.
Cost: Improving efficiency
We continue to take a disciplined approach to costs and have reduced underlying costs by 7% in the year, ahead of guidance. Our strategic partnership with Infosys continues to enhance digital capabilities, improve automation, and embed further AI capabilities, allowing the bank to scale in an efficient manner. Operating costs are already below the level needed to meet 2027 guidance and costs in 2026 will remain flat compared to 2025.
Infrastructure: Building the future
Over the year, we have continued to invest in platforms and capabilities to support growth momentum and deliver even better customer experiences. Our strategic partnership with Infosys continues to improve our digital capabilities. It includes the provision of actionable data analytics, automated processes, and enhanced digital platforms. Significant upgrades to financial crime and fraud infrastructure have helped protect our customers, and our upgraded call centre has improved customer experience while also driving efficiency.
Stores remain a key element to the Group's service offering and strategy, as an enabler of our relationship-based approach. Metro Bank opened three new stores in 2025, in line with our plan - Chester, Gateshead and Salford, with new leases signed in Newcastle and Leeds. Our Gateshead store was our first in the North East. All locations were selected to support our growing corporate, commercial and SME banking offer and local communities. All these improvements ensure we continue to build capability for the future.
Balance sheet optimisation: Maximising opportunities
We have optimised our capital position for growth following the inaugural GBP250 million AT1 securities issuance, followed by the completion of GBP584 million unsecured personal loan portfolio sale in the first half of the year. Both transactions were in line with our strategy to reposition and strengthen the balance sheet, creating additional capacity for growth to enable the bank to continue its rotation towards higher yielding assets.
Effective 1 January 2026, the Group was reclassified as a Transfer firm under the MREL regime, with MREL requirements set equal to minimum capital requirements. The Group continues to review its liability structure on an economic basis in the context of its ongoing regulatory and liquidity needs.
Metro Bank's MREL ratio at FY 2025 was 26.1%, a 310bps improvement year-on-year (FY 2024: 23.0%), and 320bps above regulatory minimum requirements (including buffers). This reflects our ongoing focus on capital management while optimising risk-adjusted returns on regulatory capital.
Excess liquidity has been successfully managed down, with high-cost fixed term deposits now comprising just 5% of the book. Total customer deposits ended FY 2025 at GBP13.4 billion (FY 2024: GBP14.5 billion), with the core customer deposit base continuing to be predominantly Retail, with growth in SMEs in line with the Group's strategy.
Cost of deposits for FY 2025 was 1.06% (FY 2024: 1.95%), with an exit cost of deposits at December 2025 of 0.94%- the lowest of any UK High Street bank. All the actions taken to optimise the balance sheet have created capacity for future growth momentum.
Communications: Empowering our colleagues and communities
In our 15th year, Metro Bank's inclusive culture remains central to our value proposition and plays a fundamental role in driving colleague engagement. After a period of business transformation, our annual Voice of the Colleague survey saw a significant 7-point uplift in satisfaction, reflecting positive engagement and confidence in the direction of the bank. We maintained a strong focus on colleague development and mobility, with almost 300 colleagues promoted during the year.
Our strategic growth in Corporate, Commercial and SME lending saw us appoint new regional heads of Corporate Banking for the Midlands, Wales and the South West as well as new Commercial Lending Directors for the North West, Wales and the South West, positioning us for the next stage of growth across the breadth of the UK.
In January 2025, we launched new brand positioning highlighting our relationship banking specialism, increasing awareness and putting in-person experience at the forefront of our customer service. This was brought to life further by our regional growth and expansion with the opening of new stores in Gateshead, Salford Quays and Chester. Our partnership with Covecta, an AI platform for financial services, was deployed across our corporate and commercial credit businesses, freeing up more time for our experts to engage with customers.
In support of our ongoing efforts to prevent fraud, we launched the Metro Bank Scam Checker in 2025, becoming the first UK bank to partner with award winning AI firm Ask Silver - allowing customers to spot scams more easily. We also partnered with the charity Victim Support to provide an independent support service for customers who have been victims of fraud.
Our ongoing commitment to community impact continued through our partnership with the England and Wales Cricket Board and the Metro Bank Girls in Cricket Fund. By removing barriers to participation and promoting the visibility of women and girls in cricket through our Seeing is Believing campaign, the number of girls' teams has increased by 32%.
Outlook: Operational execution and strong momentum allow for ongoing delivery of our strategy
Metro Bank is well placed to continue its strategic delivery and growth trajectory in the year ahead and over the medium term. We have a clear strategy and resilient business model that will support profitable growth in line with our plans against a changing market backdrop. Metro expects to more than double returns in 6 months and nearly treble them in 18 months through the ongoing execution of our clear strategy.
Finance review
Summary of the Year
2025 was another strong year as the Bank executed on its strategy and delivered across all aspects of market guidance.
We recognised an underlying profit before tax of GBP98.1 million, the highest in the Bank's history. We reduced underlying operating costs by a further 7%, actively managed down liquidity to reduce cost of deposits, and continued to strategically rotate assets to higher-yielding corporate, commercial and SME lending, and specialist mortgages.
We recorded a statutory profit before tax of GBP87.2 million, GBP299.3 million more than the GBP212.1 million statutory loss before tax in the prior year, driven by one-off transactions in 2024 that provided the foundation for growth in 2025.
Income Statement
2025 2024 Change
GBPm GBPm %
Underlying net interest income 460.3 377.9 22%
Underlying net non-interest income 124.8 125.6 (1%)
Total underlying revenue 585.1 503.5 16%
Underlying operating costs (472.7) (510.4) (7%)
Expected credit loss expense (14.3) (7.1) 101%
Underlying profit/(loss) before tax 98.1 (14.0) -
Non-underlying items (10.9) (198.2) (95%)
Statutory profit/(loss) before tax 87.2 (212.1) -
Net interest income
Net interest income increased by 22% to GBP460.3 million despite a lower average base rate and a smaller balance sheet following the GBP584 million unsecured personal loan sale during the year, reflecting the continued transition towards higher-yielding assets and a reduction in cost of deposits.
Net interest margin for the year was 2.98%, up 107bps, with an exit net interest margin of 3.17%, in line with guidance. Structural improvements to net interest margin reflect increased asset yields and lower cost of deposits. We ended the year with cost of deposits at December 2025 of 0.94%, the lowest of any UK high street bank.
Operating expenses
2025 2024
% %
Underlying cost:income ratio 81% 101%
Statutory cost:income ratio 83% 151%
Underlying operating costs reduced 7% year-on-year, to GBP473 million. We continue to take a disciplined approach to costs, allowing the Bank to scale in an efficient manner. We are focused on enhancing our digital capabilities, improving automation and embedding further AI capabilities across the Bank to drive cost efficiencies. Combined with growth in underlying income, our underlying cost to income ratio reduced to 81%. On a statutory basis, cost to income ratio reduced from 151% in 2024 to 83% in 2025, reflecting convergence between our underlying and statutory results.
Non-underlying items
2025 2024 Change
GBPm GBPm %
Impairment and write-off of property, plant, equipment and (0.7) (44.0) (98%)
intangible assets
Transformation costs (14.4) (31.1) (54%)
Remediation costs (1.2) (21.3) (94%)
Portfolio sales 5.4 (101.6) (105%)
Cost associated with capital raise - (0.1) (100%)
Non-underlying items (10.9) (198.1) (94%)
Included in our statutory results are GBP10.9 million of non-underlying items (2024: GBP198.1 million), reflecting a year of execution and focus on our target market. These include GBP5.4 million net proceeds from the GBP584 million unsecured personal loan portfolio in H1 2025 and GBP14.4 million of transformation costs incurred following localised restructuring activities.
Expected credit losses
ECL Allowance Coverage ratio Non-performing loan ratio
31 December 2025
GBPm % %
Retail mortgages 16 0.32% 4.45%
Consumer 67 58.77% 64.91%
Corporate and commercial 87 2.21% 4.27%
Total lending 170 1.89% 5.14%
31 December 2024
Retail mortgages 15 0.29% 3.95%
Consumer 108 14.43% 13.02%
Corporate and commercial 68 2.05% 6.16%
Total lending 191 2.07% 5.48%
We recognised an expected credit loss expense of GBP14.3 million in 2025, with a cost of risk of 0.16%. We continue to observe a benign credit environment with resilient credit performance across all portfolios.
Our lending portfolio remains appropriately provisioned. As at 31 December 2025, our coverage ratio was 1.89% (31 December 2024: 2.07%) with non-performing loans reducing to 5.14% of the book.
Balance sheet
Lending
2025 2024 Change
GBPm GBPm %
Retail mortgages 4,940 5,145 (4%)
Consumer lending 114 745 (85%)
Corporate and commercial 3,939 3,314 19%
Gross lending 8,993 9,204 (2%)
ECL allowance (170) (191) (11%)
Net lending 8,823 9,013 (2%)
Net loans and advances to customers ended the year at GBP8,823 million, down 2% from the prior year (2024: GBP9,013 million) as the Bank continues to actively rotate assets into target segments of corporate, commercial and SME lending and specialist mortgages. In particular, we saw a 19% increase in the gross loans and advances to commercial customers to GBP3,939 million at 31 December 2025 (31 December 2024: GBP3,314 million), driven by a record GBP2.0 billion gross new lending in the year.
The consumer portfolio decreased from GBP745 million as at 31 December 2024 to GBP114 million as at 31 December 2024 due to the sale of the GBP584 million unsecured personal loan portfolio. This sale was in line with our strategic priorities and allows us to prioritise lending in target segments.
Retail mortgages decreased from GBP5,145 million to GBP4,940 million, as we continue to actively attrite the low-yielding prime residential back-book, replaced with higher-yielding specialist mortgages.
Treasury Portfolio
Over the year, we have continued to optimise our treasury portfolio to maximise our risk adjusted return on regulatory capital, particularly as rates have fallen. We ended the year with GBP6,345 million of treasury assets (31 December 2024: GBP7,301 million), comprising GBP4,160 million investment securities and GBP2,185 million cash and balances with other banks (31 December 2024: GBP4,490 million and GBP2,811 million respectively). Our investment securities remain high quality and liquid with 75% being AAA-rated and 25% AA- to AA+ rated, the AA portion being predominantly Gilts (31 December 2024: 75% AAA, 25% AA- to AA+).
Over the next 2 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.
Other Assets
Other assets remained relatively flat year on year, at GBP1.3 billion (31 December 2024: GBP1.3 billion). Other assets include property, plant & equipment, intangible assets and deferred tax assets.
Deposits
2025 2024 Change
GBPm GBPm %
Retail customer (excluding retail partnerships) 4,765 5,968 (20%)
Retail partnership 1,832 1,785 3%
Commercial customers (excluding SMEs) 2,114 2,263 (7%)
SMEs 4,734 4,442 7%
Total customer deposits 13,445 14,458 (7%)
Of which:
Demand: current accounts 5,862 5,791 1%
Demand: savings accounts 6,901 7,534 (8%)
Fixed term: savings accounts 682 1,133 (40%)
In 2025, our overall deposits reduced to GBP13,445 million, a 7% decrease from GBP14,458 million in 2024 as we continued to manage down excess liquidity, particularly expensive fixed-term deposits. We are committed to our relationship banking model, having opened three new stores in 2025, and with 44% of total deposits coming from current accounts, we have exited the year with the lowest cost of deposits of any UK High Street Bank. We also saw a 7% increase in SME deposits in line with the Bank's strategy.
Liquidity
Our liquidity position remains strong and comfortably in excess of regulatory minimum requirements. We ended the year with a liquidity coverage ratio of 306% (31 December 2024: 337%) and a net stable funding ratio of 161% (31 December 2024: 169%). We hold large amounts of high-quality liquid assets totalling GBP5,459 million (2024: GBP6,071 million).
Capital
2025 2024 Change
GBPm GBPm %
CET1 capital1 840 808 4%
RWAs 6,711 6,442 4%
CET1 ratio1 12.5% 12.5% 0bps
Total capital ratio1 18.4% 14.9% 350bps
Total capital plus MREL ratio1 26.1% 23.0% 310bps
UK leverage ratio1 7.8% 5.6% 220bps
1. Capital figures as at 31 December 2025 are presented on a proforma basis, including our profit for the year. The
profit will only be eligible to be included in our capital resources following the completion of our audit and
publication of our Annual Report and Accounts
Throughout the year, the Group maintained a strong capital position, ending the period with CET1, total capital and total capital plus MREL ratios of 12.5%, 18.4% and 26.1% respectively (31 December 2024: 12.5%, 14.9%, 23.0%), all comfortably above minimum regulatory requirements including applicable buffers.
Our capital position is well optimised for growth, with increases across all capital ratios driven by profit generation, the successful issuance of GBP250 million of Additional Tier 1 securities, and the sale of the unsecured personal loan portfolio.
Risk weighted assets increased to GBP6,711 million (31 December 2024: GBP6,442 million) reflecting the portfolio sale, offset by continued asset rotation into higher-density corporate, commercial and SME lending, and specialist mortgages.
Overall, the year-end capital and RWA profile reflects proactive management of the balance sheet to preserve resilience, optimise capital resources, and position the Group for sustainable future growth.
Looking Ahead
As we look ahead to 2026, we are committed to continued delivery against market guidance and delivering sustained growth in underlying profitability. Growth in RoTE is largely mechanical from hereon in, with a notable tailwind from treasury asset maturities in 2026.
Risk summary
2025 has been a year of growth and delivery. We are executing our strategy and delivering for our customers and shareholders whilst building a bank set up for sustained growth. Continued management of existing risks as well as those associated with a high pace and scale of change remain clear management priorities.
Approach to risk management
Our risk management framework underpins our ability to safely deliver, ensuring risks are carefully considered when making decisions and are managed within acceptable limits on an ongoing basis. The Board sets its appetite for risk and puts in place tools and resources to manage each of our principal risks inside this appetite.
Risk management is part of every colleague's objectives and is embedded within our scorecard, against which performance is measured. Colleagues are able and encouraged to raise concerns, we take steps to ensure all applicable legal and regulatory requirements are met and we seek to maintain constructive and transparent relationships with our regulators.
We operate a 'three lines of defence' model of risk management and by leveraging well-defined governance structures and processes, promote individual accountability and action in mitigating our risk exposures.
Risk environment in 2025
Throughout 2025, our focus remained on supporting the Bank's strategic growth while operating within our defined risk appetite.
Credit portfolio performance has remained resilient, with ECL stock, coverage ratio, and arrears reducing in the year driven by debt sales and partially offset by corporate and commercial portfolio growth. ECL stock reduced by GBP21 million to GBP170 million at 31 December 2025 (31 December 2025: GBP191 million) and coverage ratio reduced by 0.18% to 1.89% at 31 December 2025 (31 December 2025: 2.07%). We continue to monitor economic uncertainty and maintain prudent provisions. Our credit policy, risk appetite, and control frameworks have been updated to reflect the strategic growth areas in retail mortgages and corporate and commercial, and are accompanied by increased technical capability in underwriting, recoveries, and portfolio oversight.
Capital strength was further supported by the sale of an unsecured personal loan portfolio and the successful issuance of GBP250m of AT1 instruments, keeping all key ratios above regulatory requirements. Liquidity has remained robust throughout the year.
Maintaining and enhancing operational resilience continued to be a priority in 2025. During the year, the Bank deepened its strategic partnership with Infosys, expanding the outsourcing of business processes. This transition was supported by detailed planning and strong third-party engagement, ensuring our control environment developed in step with new operating models.
The number of high-impact cyber incidents across the UK this year has underscored the potential severity of disruption from a cyber event. Strengthening our cyber security posture remains fundamental to our overall resilience. We have continued to invest in modern, scalable defences informed by penetration testing and external expert assessments, working closely with regulators. Embedding threat-led intelligence and resilience by design across our critical services and extended supply chain remains a core commitment.
Financial crime risk management remains a top priority for the Bank. During the year, we strengthened our control environment by recruiting highly experienced colleagues, optimising our operating model and integrating our financial crime and fraud risk management capabilities. We have invested further in our systems, completing the re-platforming of our core financial crime management solution and deploying new fraud payment profiling tools that are helping us limit losses. The Bank also launched a UK-first Scam Checker tool, developed with AI scam detection specialist Ask Silver, helping customers stay safe by analysing suspicious messages, emails, websites or documents. We launched a Financial Crime Intelligence Unit to strengthen our response to complex investigations, and, together with other UK banks, contributed to the Data Fusion pilot organised by the National Economic Crime Centre to combat serious organised crime.
Wider adoption of AI has created opportunities for improved efficiency and customer experience, balanced by the need for strong governance over data use, fairness, and model integrity. This year, we implemented policies and enhanced governance for AI risk management and as adoption scales, we remain focused on robust model risk management, transparency, explainability, and maintaining a consistent focus on good customer outcomes.
Principal risk exposures
On an ongoing basis, we assess our risks against risk appetite, including those that could result in events or circumstances that might threaten our business model, future performance, solvency or liquidity, and reputation. We consider the potential impact and likelihood of internal and external risk events and circumstances, and the timescales over which they may occur.
We identify, define and assess a range of principal risks to which we are exposed, for which risk appetite is set and monitored via key risk indicators. They are consistent with those set out in last year's annual report and comprise:
. credit risk
. capital risk
. liquidity and funding risk
. market risk
. financial crime risk
. operational risk
. conduct risk
. regulatory risk
. legal risk
. model risk
. strategic risk.
Amongst these, certain risks have been considered most material over the course of the year.
Most material risks
Risk Exposure Response Outlook
We remain in a strong position to
support the Bank's strategy for
We have an appetite and credit growth, maintaining our risk
Our primary source of credit risk is criteria appropriate for managing appetite and policies as this
through the loans, limits and lending through an economic cycle. develops, in a way that
advances we make available to our We are delivering the Bank's appropriately manages credit
customers. We have exposures across strategy to grow corporate and risk.
three key areas: corporate and commercial lending, and specialist
commercial, retail mortgages, and mortgage lending, through our
consumer lending. credit risk appetite, framework,
and policies, managing exposure to Within the macroeconomic outlook,
risk to minimise losses. risks remain as central banks
manage the course of interest
Over the course of 2025, the rates in response to inflation
macroeconomic environment has been whilst geopolitical risk
Credit risk stable but subdued, although We support customers who are in continues from conflicts.
uncertainty remains over the future arrears, have payment shortfalls,
path with inflation remaining above or are in financial difficulties,
target levels and wider global to obtain the most appropriate
political instability. Total ECL outcome for both the Bank and the We utilise forward looking
stock and coverage ratio have both customer. Our policy and processes macroeconomic scenarios provided
decreased following the sale of the ensure that appropriate mechanisms by Moody's Analytics in the
unsecured personal loan book with and tools are in place to support assessment of provisions. The use
underlying changes in retail customers during periods of of an independent supplier for
mortgages and corporate and financial difficulty and to the provision of scenarios helps
commercial reflecting the growth in minimise the duration of the to ensure that the estimates are
strategic areas. difficulty and the consequence, unbiased. The macroeconomic
costs and other impacts arising. scenarios are assessed and
reviewed monthly to ensure
appropriateness and relevance to
the ECL calculation.
Capital risk exposures arise from
the depletion of our capital Our capital risk mitigation is
resources which may result from: focused on three key components:
-- increased RWAs -- sustainable profitability The focus for 2026 remains on
-- losses that allows us to generate supporting the Bank's strategy
-- changes to regulatory organic capital growth through an appropriate and
minima or other regulatory -- the continued efficient capital stack that
rules. optimisation of our balance allows us to lend in our target
sheet to ensure we are market whilst maintaining ratios
Capital risk Our capital risk management approach utilising our capital stack above our regulatory minima. We
is centred around ensuring we can efficiently continue to prepare for the
maintain appropriate levels of -- continuing to assess the implementation of Basel 3.1 from
capital to meet regulatory minima, raising of external debt 1 January 2027.
including changes, and support our capital, as and when market
strategic objectives. conditions and opportunities
allow.
The Board is committed to these
In December, the Bank of England principles and took steps through
confirmed that the Bank will be 2025 to strengthen the capital
treated as a transfer firm under its base.
MREL-related resolution framework,
effective 1 January 2026.
As a participant in the
interconnected global financial
system, the Bank's financial crime
exposure arises where customer
accounts or infrastructure are We are committed to safeguarding
leveraged to facilitate the flow of both ourselves and our customers
illicit funds - including money from financial crime. Our
laundering, terrorist financing, strategic response centres on
proliferation financing, bribery and continuously maturing our
corruption, and tax evasion - or to financial crime framework, Recognising the evolving
process transactions and maintain prioritising sustained investment landscape of financial crime risk
relationships that would contravene in advanced detection technologies against the backdrop of
applicable sanctions obligations. and regular review of our increasing regulatory focus, we
operating model's adequacy. continue to invest in our
financial crime control
Financial environment to prevent financial
crime risk Without an adequate and crime. We will continue to
proportionate financial crime strengthen our control framework
framework, risks may go unaddressed to ensure systems and controls
and business activities may take are adequate and effective to
place in contravention of financial mitigate the risks we are exposed
crime law and regulatory We prioritise targeted recruitment to, and remain aligned to our
requirements. of high-skilled specialists to legal and regulatory
ensure our control environment and requirements.
expertise evolve with increasingly
sophisticated financial criminal
In addition, an inability to conduct typologies, and proactively
appropriate oversight may affect the integrate emerging threat
Bank's ability to operate intelligence into our response.
effectively, with potential impacts
to both customer and own objectives,
exposing the Bank to increased
reputational risk.
The Bank's fraud exposure primarily We prioritise sustained investment
arises from the exploitation of our in advanced detection technologies
payment infrastructure and digital and regular review of our
channels by external actors, through operating model's adequacy, Recognising the evolving
sophisticated social engineering, including targeted recruitment of landscape of fraud risk against
mandate fraud, and cyber-enabled high-skilled specialists to ensure the backdrop of increasing
account takeover, or the use of our our control environment and regulatory focus, we continue to
Fraud risk credit facilities for fraudulent expertise evolve with increasingly invest in our control environment
gain. sophisticated financial criminal to prevent fraud and remain
typologies. This allows us to aligned to our legal and
proactively enhance existing regulatory requirements.
controls based on emerging
We identify and assess fraud risk as intelligence and the shifting
a subset of operational risk. typologies of global fraud
networks.
Information Security and Cyber risk
arises from potential compromise of We have continued to enhance the
critical systems and data. The Bank's security controls including Cyber risk is expected to remain
external threat environment has those related to vulnerability elevated as threat actors adopt
intensified, with ransomware, management, identity and access increasingly advanced techniques
service disruption and data theft management and endpoint detection. and organisations increase their
activity widespread and a volatile dependence on digital services.
geopolitical environment potentially Broader technology trends suggest
increasing the threat to the UK. that cyber incidents will
Information Attacks are becoming more Informed by penetration testing continue to be a top operational
security and sophisticated, increasingly and expert reviews, we are making risk and will continue to evolve
cyber leveraging automation and targeting significant investments in our security posture to ensure
operational vulnerabilities, future-ready cyber defences, our controls remain proportionate
contributing to a rise in applying advanced threat and effective against emerging
significant incidents across the UK. intelligence throughout business threats.
and risk activities, as well as
applying the principal of cyber
resilience by design across all
We identify and assess information our critical services including
security and cyber risk as a subset our supply chain.
of operational risk.
Consolidated statement of comprehensive income
Years ended 31 December
2025 2024
Notes
GBP'million GBP'million
Interest income 2 725.4 935.4
Interest expense 2 (265.1) (557.5)
Net interest income 460.3 377.9
Fee and commission income 3 96.7 98.0
Fee and commission expense 3 (5.6) (4.8)
Net fee and commission income 91.1 93.2
Net gains on sale of assets 4 5.2 (101.4)
Other income 5 36.7 35.6
Total income 593.3 405.3
General operating expenses 6 (429.4) (489.0)
Depreciation and amortisation (61.7) (77.3)
Impairment and write-offs of property, plant, equipment and (0.7) (44.0)
intangible assets
Total operating expenses (491.8) (610.3)
Expected credit loss expense 13 (14.3) (7.1)
Profit/(loss) before tax 87.2 (212.1)
Taxation 7 (17.5) 254.6
Profit for the year 69.7 42.5
Profit attributable to ordinary shareholders 52.4 42.5
Profit attributable to other equity holders 17.3 -
Profit for the year 69.7 42.5
Consolidated statement of comprehensive income
Years ended 31 December
2025 2024
Notes
GBP'million GBP'million
Profit for the year 69.7 42.5
Other comprehensive income for the year
Items which will be reclassified subsequently to profit or loss:
Movement in respect of investment securities held at FVOCI (net of tax):
changes in fair value 4.2 3.4
Total other comprehensive income 4.2 3.4
Total comprehensive income for the year 73.9 45.9
Total comprehensive income attributable to ordinary shareholders 56.6 45.9
Total comprehensive income attributable to other equity holders 17.3 -
Total comprehensive income for the year 73.9 45.9
Earnings per share
Basic (pence) 16 7.8 6.3
Diluted (pence) 16 7.7 6.3
Consolidated balance sheet
Years ended 31 December
2025 2024
Notes
GBP'million GBP'million
Cash and balances with the other banks 2,185 2,811
Loans and advances to customers 9 8,823 9,013
Investment securities held at fair value through other 10 218 377
comprehensive income
Investment securities held at amortised cost 10 3,942 4,113
Derivative financial assets 23 16
Property, plant and equipment 705 711
Intangible assets 143 127
Prepayments and accrued income 81 93
Deferred tax assets (net) 7 230 240
Other assets 125 82
Total assets 16,475 17,582
Deposits from customers 13,445 14,458
Deposits from central banks 400 400
Debt securities 684 675
Repurchase agreements 73 391
Derivative financial liabilities - 1
Lease liabilities 11 185 205
Deferred grants 10 13
Provisions 6 11
Other liabilities 188 245
Total liabilities 14,991 16,399
Called-up share capital and share premium 12 146 144
Retained earnings 1,075 1022
Other equity instruments 12 242 -
Other reserves 21 17
Total equity 1,484 1,183
Total equity and liabilities 16,475 17,582
Consolidated statement of changes in equity
For the year ended 31 December 2025
Called up
Share
Other
Merger Retained FVOCI equity Total
share
option
reserve earnings reserve instruments equity
capital
and share reserve
premium
GBP'million GBP'million GBP'million GBP'million GBP'million
GBP'million
GBP'million
Balance as at 1 January 2025 144 - 1,022 (7) 24 - 1,183
Profit for the year - - 52 - - 17 69
Other comprehensive expense (net of tax)
relating to investment securities designated - - - 4 - - 4
at fair value through other comprehensive
income
Total comprehensive income - - 52 4 - 17 73
Issuance of shares under existing employee 2 - - - (2) - -
schemes
Issuance of other equity instruments (net of - - - - - 242 242
costs)
Equity-settled share-based payment charges - - - - 3 - 3
Distributions on equity instruments - - - - - (17) (17)
Other movements in share option charges - - 1 - (1) - -
Balance as at 31 December 2025 146 - 1,075 (3) 24 242 1,484
Balance as at 1 January 2024 144 - 978 (11) 23 - 1,134
Profit for the year - - 43 - - - 43
Other comprehensive income (net of tax)
relating to investment securities designated - - - 4 - - 4
at fair value through other comprehensive
income
Total comprehensive income - - 43 4 - - 47
Equity-settled share-based payment charges - - - - 2 - 2
Other movements in share option charges - - 1 - (1) - -
Balance as at 31 December 2024 144 - 1,022 (7) 24 - 1,183
Consolidated cash flow statement
Years ended 31 December
2025 2024
Notes
GBP'million GBP'million
Reconciliation of profit/(loss) before tax to net cash flows from operating
activities:
Profit/(loss) before tax 87 (212)
Adjustments for non-cash items 17 (392) (359)
Interest received 749 948
Interest paid (320) (585)
Changes in other operating assets 113 3,320
Changes in other operating liabilities (1,325) (4,497)
Net cash (outflows) from operating activities (1,088) (1,385)
Cash flows from investing activities
Sales, redemptions and paydowns of investment securities 1,154 1,017
Purchase of investment securities (816) (630)
Purchase of property, plant and equipment (34) (41)
Purchase and development of intangible assets (48) (19)
Net cash inflows from investing activities 256 327
Cash flows from financing activities
Repayment of capital elements of leases 11 (19) (22)
Issuance of shares and other-equity instruments (net of costs) 12 242 -
Distributions on equity instruments 12 (17) -
Net cash inflows/(outflows) from financing activities 206 (22)
Net (decrease) in cash and cash equivalents (626) (1,080)
Cash and cash equivalents at start of year 2,811 3,891
Cash and cash equivalents at end of year 2,185 2,811
1. Basis of preparation and significant accounting policies
Basis of preparation
The financial information in this document is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2024 have been filed with the Registrar of Companies. The report of the auditor on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Act. The statutory accounts for the year ended 31 December 2025 will be filed with the Registrar of Companies in accordance with section 441 of the Act. The auditor has not yet reported on these accounts.
2. Net interest income
Interest income
2025 2024
GBP'million GBP'million
Cash and balances held with other banks 93.8 193.1
Loans and advances to customers 507.9 586.2
Investment securities held at amortised cost 113.4 126.1
Investment securities held at FVOCI 3.9 18.3
Interest income calculated using the effective interest rate method 719.0 923.7
Derivatives in hedge relationships 6.4 11.7
Total interest income 725.4 935.4
Interest expense
2025 2024
GBP'million GBP'million
Deposits from customers 143.2 303.6
Deposits from central banks 17.0 124.2
Debt securities 85.0 84.8
Lease liabilities 10.5 12.4
Repurchase agreements 7.6 26.5
Interest expense calculated using the effective interest rate method 263.3 551.5
Derivatives in hedge relationships 1.8 6.0
Total interest expense 265.1 557.5
3. Net fee and commission income
2025 2024
GBP'million GBP'million
Service charges and other fee income 38.3 38.6
Safe deposit box income 20.1 19.0
ATM and interchange fees 38.3 40.4
Fee and commission income 96.7 98.0
Fee and commission expense (5.6) (4.8)
Total net fee and commission income 91.1 93.2
4. Net gain/(loss) on sale of assets
2025 2024
GBP'million GBP'million
Loan portfolios 5.2 (101.4)
Total net gain/(loss) on sale of assets 5.2 (101.4)
5. Other income
2025 2024
GBP'million GBP'million
Foreign currency transactions 27.0 29.7
Rental income 0.8 1.3
Deferred grant income 2.8 3.4
Gains on lease modification 5.0 -
Other income 1.1 1.2
Total other income 36.7 35.6
6. General operating expenses
2025 2024
GBP'million GBP'million
People costs 197.8 209.6
Information technology costs 56.4 60.1
Occupancy costs 30.2 30.9
Money transmission and other banking-related costs 43.2 49.3
Transformation costs 14.4 31.1
Remediation costs 1.2 21.3
Capability and Innovation Fund costs 2.7 3.4
Legal and regulatory fees 9.2 9.0
Professional fees 35.4 27.7
Printing, postage and stationery costs 5.5 7.5
Travel costs 1.5 1.4
Marketing costs 6.7 9.4
Other 25.2 28.3
Total general operating expenses 429.4 489.0
7. Taxation
Tax (expense)/credit
2025 2024
GBP'million GBP'million
Current tax
Current tax (9.2) -
Total current tax (expense) (9.2) -
Deferred tax
Origination and reversal of temporary differences (12.4) 254.1
Adjustment in respect of prior years 4.1 0.5
Total deferred tax (expense)/credit (8.3) 254.6
Total tax (expense)/credit (17.5) 254.6
Reconciliation of the total tax expense
Effective Effective
2025 2024
tax rate tax rate
GBP'million GBP'million
% %
Accounting profit/(loss) before tax 87.2 (212.1)
Tax (expense)/credit at statutory tax rate of 25% (2024: 25%) (21.8) 25.0% 53.0 25.0%
Tax effects of:
Non-deductible expenses - depreciation on non-qualifying (3.0) 3.4% (3.0) (1.4%)
fixed assets
Non-deductible expenses - other (0.1) 0.1% (7.7) (3.6%)
AT1 interest 4.3 (5.0%) - -
Share-based payments (1.0) 1.2% (0.2) (0.1%)
Adjustment in respect of prior years 4.1 (4.5%) 0.6 0.3%
Movement in recognised deferred tax asset for unused tax - - 211.9 99.9%
losses
Tax (expense)/credit reported in the consolidated income (17.5) 20.2% 254.6 120.0%
statement
Deferred tax assets
A deferred tax asset must be regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not there will be suitable tax profits from which the future of the underlying timing differences can be deducted.
The following table shows deferred tax recorded in the statement of financial position and changes recorded in the tax expense:
31 December 2025
Investment
Share- Property,
Unused securities Intangible
based plant and Total
tax losses and assets
payments equipment GBP'million
GBP'million impairments GBP'million
GBP'million GBP'million
GBP'million
Deferred tax assets 259 1 - - - 260
Deferred tax liabilities - 1 - (30) (1) (30)
Deferred tax assets (net) 259 2 - (30) (1) 230
1 January 2025 269 4 1 (31) (3) 240
Prior year movement - - - 2 2 4
Income statement (10) (1) (1) (1) - (13)
Other comprehensive income - (1) - - - (1)
31 December 2025 259 2 - (30) (1) 230
31 December 2024
Investment
Share- Property,
Unused securities Intangible
based plant and Total
tax losses and assets
payments equipment GBP'million
GBP'million impairments GBP'million
GBP'million GBP'million
GBP'million
Deferred tax assets 269 1 1 - - 271
Deferred tax liabilities - 3 - (31) (3) (31)
Deferred tax assets (net) 269 4 1 (31) (3) 240
1 January 2024 14 6 1 (29) (5) (13)
Prior year movement (1) (1) - - 1 (1)
Income statement 256 - - (2) 1 255
Other comprehensive expense - (1) - - - (1)
31 December 2025 269 4 1 (31) (3) 240
Offsetting of deferred tax assets and liabilities
We have presented all the deferred tax assets and liabilities above on a net basis within the balance sheet. This is on the basis that all our deferred tax assets and liabilities relate to taxes levied by HMRC and we have a legally enforceable right to offset these.
Deferred Tax on unused Tax losses
We have recognised deferred tax assets on all tax losses. Metro Bank has forecasts showing an expectation of future profit which support recognition of the deferred tax asset.
8. Financial instruments
Our financial instruments primarily comprise customer deposits, loans and advances to customers and investment securities, all of which arise as a result of our normal operations.
The main financial risks arising from our financial instruments are credit risk, liquidity risk and market risks (price and interest rate risk).
The financial instruments we hold are simple in nature and we do not consider that we have made any significant or material judgements relating to the classification and measurement of financial instruments under IFRS 9.
Cash and balances with the Bank of England, trade and other receivables, trade and other payables and other assets and liabilities which meet the definition of financial instruments are not included in the following tables.
Classification of financial instruments
31 December 2025
Fair value
through Amortised
FVOCI Total
profit and cost
GBP'million GBP'million
loss GBP'million
GBP'million
Assets
Loans and advances to customers - - 8,823 8,823
Investment securities - 218 3,942 4,160
Derivative financial assets 23 - - 23
Liabilities
Deposits from customers - - 13,445 13,445
Deposits from central banks - - 400 400
Debt securities - - 684 684
Repurchase agreements - - 73 73
31 December 2024
Fair value
through Amortised
FVOCI Total
profit cost
GBP'million GBP'million
and loss GBP'million
GBP'million
Assets
Loans and advances to customers - - 9,013 9,013
Investment securities - 377 4,113 4,490
Derivative financial assets 16 - - 16
Liabilities
Deposits from customers - - 14,458 14,458
Deposits from central banks - - 400 400
Debt securities - - 675 675
Derivative financial liabilities 1 - - 1
Repurchase agreements - - 391 391
9. Loans and advances to customers
31 December 2025 31 December 2024
Gross Net Gross Net
ECL ECL
carrying carrying carrying carrying
allowance allowance
amount amount amount amount
GBP'million GBP'million
GBP'million GBP'million GBP'million GBP'million
Consumer lending 114 (67) 47 745 (108) 637
Retail mortgages 4,940 (16) 4,924 5,145 (15) 5,130
Corporate and commercial lending 3,939 (87) 3,852 3,314 (68) 3,246
Total loans and advances to 8,993 (170) 8,823 9,204 (191) 9,013
customers
Gross loans and advances by product category
31 December 31 December
2025 2024
GBP'million GBP'million
Overdrafts 33 39
Credit cards 13 20
Term loans 63 679
Consumer auto-finance 5 7
Total consumer lending 114 745
Residential owner occupied 3,500 3,692
Retail buy-to-let 1,440 1,453
Total retail mortgages 4,940 5,145
Total retail lending 5,054 5,890
Professional buy-to-let 177 283
Bounce back loans 185 346
Coronavirus business interruption loans 18 47
Recovery loan scheme1 166 260
Core corporate and commercial lending 2,363 1,599
Corporate and commercial term loans 2,909 2,535
Overdrafts and revolving credit facilities 221 220
Credit cards 10 7
SME Asset Finance Ltd and SME Invoice Finance Ltd 799 552
Total corporate and commercial lending 3,939 3,314
Gross loans and advances to customers 8,993 9,204
1. Recovery loan scheme includes GBP45 million acquired from third parties under forward flow arrangements (31 December 2024: GBP45 million). The loans are held in a trust arrangement in which we hold 99% of the beneficial interest, with the issuer retaining the remaining 1% (the trust retains the legal title loans).
10. Investment securities
31 December
31 December
2024
2025
GBP'million
GBP'million
Investment securities held at FVOCI 218 377
Investment securities held at amortised cost 3,942 4,113
Total investment securities 4,160 4,490
Investment securities held at FVOCI
31 December
31 December
2024
2025
GBP'million
GBP'million
Sovereign bonds 62 149
Covered bonds 31 83
Multi-lateral development bank bonds 125 145
Total investment securities held at FVOCI 218 377
Investment securities held at amortised cost
31 December
31 December
2024
2025
GBP'million
GBP'million
Sovereign bonds 982 875
Residential mortgage-backed securities 935 876
Covered bonds 438 478
Multi-lateral development bank bonds 1,273 1,576
Asset backed securities 314 308
Total investment securities held at amortised cost 3,942 4,113
11. Leases
Lease liabilities
2025 2024
GBP'million GBP'million
1 January 205 234
Additions and modifications 1 1
Disposals (13) (20)
Lease payments made (19) (22)
Interest on lease liabilities 11 12
31 December 185 205
Minimum lease payments
31 December 31 December
2025 2024
GBP'million GBP'million
Within one year 19 20
Due in one to five years 68 74
Due in more than five years 80 101
Total 167 195
12. Share capital, share premium and other equity
Called-up ordinary share capital, issued and fully paid
2025
Total share
Number Share capital Other equity
Share capital
of shares premium and share instruments
GBP'million
GBP'million GBP'million premium GBP'million
GBP'million
At 1 January 673.0 - 144.4 144.4 -
Issued to staff under existing employee share 0.3 0.2 1.4 1.6 -
schemes
AT1 securities issuance - - - - 241.8
At 31 December 673.3 0.2 145.8 146.0 241.8
2024
Total share
Number Share capital Other equity
Share capital
of shares premium and share instruments
GBP'million
GBP'million GBP'million premium GBP'million
GBP'million
At 1 January 672.7 - 144.4 144.4 -
Issued to staff under existing employee share 0.3 - - - -
schemes
At 31 December 673.0 - 144.4 144.4 -
Other equity instruments
Other equity instruments of GBP242 million (31 December 2024: Nil) include AT1 securities issued by Metro Bank Holdings PLC. The AT1 securities are perpetual securities with no fixed maturity or redemption date and are structured to qualify as AT1 instruments under prevailing capital rules applicable as at the relevant issue date.
In 2025, there was one issuance of AT1 instruments, in the form of Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities, for GBP250 million (2024: Nil). These AT1 securities are classified as an equity instrument under IAS 32 "Financial Instruments: Presentation" with the proceeds recognised in equity net of transaction costs of GBP8 million. Interest payments on these securities are recognised as distributions from equity in the period in which they are paid.
AT1 equity instruments
2025
Initial call date
GBP'million
At 1 January -
Issued during the year:
13.875% Fixed Rate Resetting Perpetual Subordinated Contingent Convertible 26-Mar-30 250
Securities
Cost of issuance (8)
Profit for the year attributable to other equity holders 17
Distributions on other equity instruments (17)
At 31 December 242
The principal terms of the AT1 securities are described below:
The securities rank behind the claims against Metro Bank PLC of:
a) unsubordinated creditors;
b) claims which are expressed to be subordinated to the claims of unsubordinated creditors of Metro Bank PLC but not further or otherwise; or
c) claims which are, or are expressed to be, junior to the claims of other creditors of Metro Bank PLC, whether subordinated or unsubordinated, other than claims which rank, or are expressed to rank, pari passu with, or junior to, the claims of holders of the AT1 securities.
The securities are undated and are redeemable, at the option of Metro Bank PLC, in whole on:
a) the initial reset date, or on any fifth anniversary after the initial reset date; or
b) any day falling in a named period ending on the initial reset date, or on any fifth anniversary after the initial reset date. In addition, the AT1 securities are redeemable, at the option of Metro Bank PLC, in whole in the event of certain changes in the tax or regulatory treatment of the securities. Any redemptions require the prior consent of the PRA.
Interest on the securities will be due and payable only at the sole discretion of Metro Bank PLC, and Metro Bank PLC has sole and absolute discretion at all times and for any reason to cancel (in whole or in part) any interest payment that would otherwise be payable on any interest payment date.
13. Expected credit losses and credit risk
Expected credit loss expense
2025 2024
GBP'million GBP'million
Retail mortgages 1 (4)
Consumer lending1 (9) -
Commercial lending 19 (4)
Write-offs and other movements 3 15
Total expected credit loss expense 14 7
1. Consumer lending and write-offs has been adjusted for the GBP584 million sale of unsecured personal loans.
Loss allowance
Total loans and advances to customers
Gross carrying amount Loss allowance Net carrying amount
GBP'million Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total
1 January 2025 7,723 978 504 (1) 9,204 (39) (29) (124) 1 (191) 7,684 949 380 - 9,013
Transfers to/ 301 (288) (13) - - (8) 7 1 - - 293 (281) (12) - -
(from) Stage 11
Transfers to/ (281) 285 (3) - 1 2 (2) - - - (279) 283 (3) - 1
(from) Stage 2
-
Transfers to/
(from) Stage 3 (111) (37) 148 - - - 3 (4) - (1) (111) (34) 144 -
(1)
Net
remeasurement - - - - - 7 (8) (23) - (24) 7 (8) (23) - (24)
due to
transfers2
New lending3 2,227 94 2 - 2,323 (14) (1) (1) - (16) 2,213 93 1 - 2,307
Repayments,
additional
drawdowns and (384) (36) (20) - (440) - - - - - (384) (36) (20) - (440)
interest
accrued
Derecognitions4 (1,656) (283) (156) - (2,095) 15 10 33 - 58 (1,641) (273) (123) - (2,037)
Changes to
model - - - - - 5 2 (3) - 4 5 2 (3) - 4
assumptions5
31 December 7,819 713 462 (1) 8,993 (32) (18) (121) 1 (170) 7,787 695 341 - 8,823
2025
Off-balance
sheet items
Commitments and 718 - 718
guarantees6
Gross carrying amount Loss allowance Net carrying amount
GBP'million Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total
1 January 2024 10,596 1,511 389 - 12,496 (63) (43) (93) - (199) 10,533 1,468 296 - 12,297
-
Transfers to/
(from) Stage 11 385 (368) (17) - (11) 10 1 - - 374 (358) (16) - -
Transfers to/ (409) 416 (7) - - 2 (2) - - - (407) 414 (7) - -
(from) Stage 2
Transfers to/ (192) (100) 292 - - 4 7 (11) - - (188) (93) 281 - -
(from) Stage 3
Net
remeasurement - - - - - 9 (13) (40) - (44) 9 (13) (40) - (44)
due to
transfers2
New lending3 1,717 147 - - 1,864 (11) (3) (1) - (15) 1,706 144 (1) - 1,849
Repayments,
additional
drawdowns and (619) (121) (32) (1) (773) - - - - - (619) (121) (32) (1) (773)
interest
accrued
Derecognitions4 (507) (121) - 11 11 20 - 42 (496) (101) -
(3,755) (4,383) (3,744) (4,341)
Changes to
model - - - - - 20 4 - 1 25 20 4 - 1 25
assumptions5
31 December 7,723 978 504 (1) 9,204 (39) (29) (124) 1 (191) 7,684 949 380 - 9,013
2024
Off-balance
sheet items
Commitments and 718 - 718
guarantees6
1. Represents stage transfers prior to any ECL remeasurements. 2. Represents the remeasurement between the 12 month and lifetime ECL due to stage transfer. In addition, it includes
any ECL change resulting from model assumptions and forward-looking information on these loans. 3. Represents the increase in balances resulting from loans and advances that have been newly originated, purchased or
renewed as well as any ECL that has been recognised in relation to these loans during the year. 4. Represents the decrease in balances resulting from loans and advances that have been fully repaid, sold or written
off. 5. Represents the change in ECL to those loans that remain within the same stage through the year.
Retail mortgages
Gross carrying amount Loss allowance Net carrying amount
GBP'million Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total
1 January 2025 4,358 584 203 - 5,145 (4) (4) (7) - (15) 4,354 580 196 - 5,130
Transfers to/ 212 (202) (10) - - (1) 1 - - - 211 (201) (10) - -
(from) Stage 1
Transfers to/ (142) 145 (3) - - - - - - - (142) 145 (3) - -
(from) Stage 2
Transfers to/ (48) (24) 72 - - - 1 (1) - - (48) (23) 71 - -
(from) Stage 3
Net
remeasurement - - - - - 1 (1) (2) - (2) 1 (1) (2) - (2)
due to
transfers
New lending 605 66 1 - 672 (1) - - - (1) 604 66 1 - 671
Repayments,
additional
drawdowns and (107) (9) 1 - (115) - - - - - (107) (9) 1 - (115)
interest
accrued
Derecognitions (654) (64) (44) - (762) - - 2 - 2 (654) (64) (42) - (760)
31 December 4,224 496 220 - 4,940 (5) (3) (8) - (16) 4,219 493 212 - 4,924
2025
Gross carrying amount Loss allowance Net carrying amount
GBP'million Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total
1 January 2024 6,887 784 146 - 7,817 (7) (6) (6) - (19) 6,880 778 140 - 7,798
Transfers to/ 146 (138) (8) - - (1) 1 - - - 145 (137) (8) - -
(from) Stage 1
Transfers to/ (171) 173 (2) - - - - - - - (171) 173 (2) - -
(from) Stage 2
Transfers to/ (53) (46) 99 - - - 1 (1) - - (53) (45) 98 - -
(from) Stage 3
Net
remeasurement - - - - - 1 (1) (2) - (2) 1 (1) (2) - (2)
due to
transfers
New lending 728 126 - - 854 (1) (2) - - (3) 726 124 - - 851
Repayments,
additional
drawdowns (113) (13) 1 - (124) - - - - - (113) (12) 1 - (124)
and interest
accrued
Derecognitions (303) (33) - 3 2 2 - 7 (301) (31) -
(3,066) (3,402) (3,063) (3,395)
Changes to
model - - - - - 1 1 - - 2 1 1 - - 2
assumptions
31 December 4,358 584 203 - 5,145 (4) (4) (7) - (15) 4,354 580 196 - 5,130
2024
Consumer lending
Gross carrying amount Loss allowance Net carrying amount
GBP'million Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total
1 January 2025 496 153 97 (1) 745 (12) (9) (88) 1 (108) 484 144 9 - 637
Transfers to/ 7 (6) (1) - - (2) 1 1 - - 5 (5) - - -
(from) Stage 1
Transfers to/ (1) 1 - - - - - - - - (1) 1 - - -
(from) Stage 2
Transfers to/ (1) (4) 5 - - - 1 (1) - - (1) (3) 4 - -
(from) Stage 3
Net
remeasurement - - - - - 2 - (3) - (1) 2 - (3) - (1)
due to
transfers
New lending 4 - - - 4 - - - - - 4 - - - 4
Repayments,
additional
drawdowns and (12) - (5) - (17) - - - - - (12) - (5) - (17)
interest
accrued
Derecognitions (456) (140) (22) - (618) 11 6 20 - 37 (445) (134) (2) - (581)
Changes to
model - - - - - 1 - 4 - 5 1 - 4 - 5
assumptions
31 December 37 4 74 (1) 114 - (1) (67) 1 (67) 37 3 7 - 47
2025
Gross carrying amount Loss allowance Net carrying amount
GBP'million Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total
1 January 2024 906 314 77 - 1,297 (26) (16) (66) - (108) 880 298 11 - 1,189
Transfers to/ 80 (79) (1) - - (3) 3 - - - 77 (76) (1) - -
(from) Stage 1
Transfers to/ (74) 74 - - - 1 (1) - - - (73) 73 - - -
(from) Stage 2
Transfers to/ (27) (14) 41 - - 1 4 (5) - - (26) (10) 36 - -
(from) Stage 3
Net
remeasurement - - - - - 2 (4) (25) - (27) 2 (4) (25) - (27)
due to
transfers
New lending 4 - - - 4 - - - - - 4 - - - 4
Repayments,
additional
drawdowns (226) (83) (10) (1) (320) - - - - - (226) (83) (10) (1) (320)
and interest
accrued
Derecognitions (167) (59) (10) - (236) 4 2 9 - 15 (163) (57) (1) - (221)
Changes to
model - - - - - 9 3 (1) 1 12 9 3 (1) 1 12
assumptions
31 December 496 153 97 (1) 745 (12) (9) (88) 1 (108) 484 144 9 - 637
2024
Corporate and commercial lending
Gross carrying amount Loss allowance Net carrying amount
GBP'million Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total
1 January 2025 2,869 241 204 - 3,314 (23) (16) (29) - (68) 2,846 225 175 - 3,246
Transfers to/ 82 (80) (2) - - (5) 5 - - - 77 (75) (2) - -
(from) Stage 1
Transfers to/ (138) 139 - - 1 2 (2) - - - (136) 137 - - 1
(from) Stage 2
Transfers to/ (62) (9) 71 - - - 1 (2) - (1) (62) (8) 69 - (1)
(from) Stage 3
Net
remeasurement - - - - - 4 (7) (18) - (21) 4 (7) (18) - (21)
due to
transfers
New lending 1,619 28 1 - 1,648 (13) (1) (1) - (15) 1,606 27 - - 1,633
Repayments,
additional
drawdowns (265) (27) (16) - (308) - - - - - (265) (27) (16) - (308)
and interest
accrued
Derecognitions (547) (79) (90) - (716) 4 4 11 - 19 (543) (75) (79) - (697)
Changes to
model - - - - - 4 2 (7) - (1) 4 2 (7) - (1)
assumptions
31 December 3,558 213 168 - 3,939 (27) (14) (46) - (87) 3,531 199 122 - 3,852
2025
Gross carrying amount Loss allowance Net carrying amount
GBP'million Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total
1 January 2024 2,803 413 166 - 3,382 (30) (21) (21) - (72) 2,773 392 145 - 3,310
Transfers to/ 159 (151) (8) - - (7) 6 1 - - 152 (145) (7) - -
(from) Stage 1
Transfers to/ (164) 169 (5) - - 1 (1) - - - (163) 168 (5) - -
(from) Stage 2
Transfers to/ (112) (40) 152 - - 3 2 (5) - - (109) (38) 147 - -
(from) Stage 3
Net
remeasurement - - - - - 6 (9) (13) - (16) 6 (9) (13) - (16)
due to
transfers
New lending 984 21 1 - 1,006 (10) (1) (1) - (12) 974 20 - - 994
Repayments,
additional
drawdowns (279) (26) (24) - (329) - - - - - (279) (26) (24) - (329)
and interest
accrued
Derecognitions (522) (145) (78) - (745) 4 7 9 - 20 (518) (138) (69) - (725)
Changes to
model - - - - - 10 1 1 - 12 10 1 1 - 12
assumptions
31 December 2,869 241 204 - 3,314 (23) (16) (29) - (68) 2,846 225 175 - 3,246
2024
Credit risk exposures
Retail mortgages
31 December 2025 31 December 2024
Stage 1 Stage 2 Stage 3 POCI Stage 1 Stage 2 Stage 3 POCI
GBP'million 12-month Lifetime Lifetime Lifetime 12-month Lifetime Lifetime Lifetime
ECL ECL ECL ECL ECL ECL ECL ECL
Up to date 4,221 450 59 - 4,356 504 57 -
1 to 29 days past due 3 17 9 - 2 21 11 -
30 to 89 days past due - 29 31 - - 59 21 -
90+ days past due - - 121 - - - 114 -
Gross carrying amount 4,224 496 220 - 4,358 584 203 -
Consumer lending
31 December 2025 31 December 2024
Stage 1 Stage 2 Stage 3 POCI Stage 1 Stage 2 Stage 3 POCI
GBP'million 12-month Lifetime Lifetime Lifetime 12-month Lifetime Lifetime Lifetime
ECL ECL ECL ECL ECL ECL ECL ECL
Up to date 36 2 4 - 496 141 2 1
1 to 29 days past due - 1 - - - 2 1 -
30 to 89 days past due 1 1 1 - - 10 5 -
90+ days past due - - 69 (1) - - 89 -
Gross carrying amount 37 4 74 (1) 496 153 97 1
Corporate and commercial lending
31 December 2025 31 December 2024
Stage 1 Stage 2 Stage 3 POCI Stage 1 Stage 2 Stage 3 POCI
GBP'million 12-month Lifetime Lifetime Lifetime 12-month Lifetime Lifetime Lifetime
ECL ECL ECL ECL ECL ECL ECL ECL
Up to date 3,544 176 78 - 2,842 204 86 -
1 to 29 days past due 14 28 5 - 27 16 2 -
30 to 89 days past due - 9 5 - - 21 60 -
90+ days past due - - 80 - - - 56 -
Gross carrying amount 3,558 213 168 - 2,869 241 204 -
Credit risk concentration
Retail mortgage lending by repayment type
31 December 2025 31 December 2024
GBP'million GBP'million
Retail owner Retail Total Retail owner Retail Total
occupied buy-to-let retail occupied buy-to-let retail
mortgages mortgages
Interest only 1,180 1,378 2,558 1,330 1,398 2,728
Capital and repayment 2,320 62 2,382 2,362 55 2,417
Total retail mortgage 3,500 1,440 4,940 3,692 1,453 5,145
lending
Retail mortgage lending by geographic exposure
31 December 2025 31 December 2024
GBP'million GBP'million
Retail owner Retail Total Retail owner Retail Total
occupied buy-to-let retail occupied buy-to-let retail
mortgages mortgages
Greater London 1,211 776 1,987 1,324 808 2,132
South-east 919 286 1,205 975 283 1,258
South-west 299 66 365 313 63 376
East of England 364 115 479 379 114 493
North-west 156 47 203 155 44 199
West Midlands 147 53 200 154 47 201
Yorkshire and the 117 25 142 107 25 132
Humber
East Midlands 103 42 145 104 40 144
Wales 65 12 77 67 13 80
North-east 34 7 41 34 7 41
Scotland 85 11 96 80 9 89
Total retail mortgage 3,500 1,440 4,940 3,692 1,453 5,145
lending
Retail mortgage lending by DTV
31 December 2025 31 December 2024
GBP'million GBP'million
Retail owner Retail Total Retail owner Retail Total
occupied buy-to-let retail occupied buy-to-let retail
mortgages mortgages
Less than 50% 1,140 212 1,352 1,282 263 1,545
51-60% 489 182 671 601 210 811
61-70% 603 394 997 611 417 1,028
71-80% 771 628 1,399 761 543 1,304
81-90% 438 23 461 397 16 413
91-100% 58 - 58 39 3 42
More than 100% 1 1 2 1 1 2
Total retail mortgage 3,500 1,440 4,940 3,692 1,453 5,145
lending
Corporate and commercial lending - excluding BBLS by repayment type
31 December 2025 31 December 2024
GBP'million GBP'million
Professional Other Professional Other
Total corporate and Total corporate and
commercial term loans commercial term loans
buy-to-let term buy-to-let term
loans loans
Interest only 172 650 822 270 393 663
Capital and repayment 5 1,897 1,902 13 1,513 1,526
Total corporate and 177 2,547 2,724 283 1,906 2,189
commercial term loans
Corporate and commercial term lending - excluding BBLS by geographic exposure
31 December 2025 31 December 2024
GBP'million GBP'million
Professional Other Professional Other
Total corporate and Total corporate and
commercial term loans commercial term loans
buy-to-let term buy-to-let term
loans loans
Greater London 100 1,025 1,125 181 813 994
South-east 42 442 484 48 334 382
South-west 7 122 129 10 90 100
East of England 10 224 234 20 200 220
North-west 4 101 105 7 115 122
West Midlands 3 273 276 3 185 188
Yorkshire and the 2 56 58 2 11 13
Humber
East Midlands 5 64 69 6 55 60
Wales 2 24 26 2 4 6
North-east 1 71 72 2 73 75
Scotland - 67 67 - 3 3
Northern Ireland 1 1 2 1 1 2
National - 77 77 1 22 23
Total corporate and 177 2,547 2,724 283 1,906 2,189
commercial term loans
Corporate and commercial term lending - excluding BBLS by sector exposure
31 December 2025 31 December 2024
GBP'million GBP'million
Professional Other Professional Other
Total corporate and Total corporate and
commercial term loans commercial term loans
buy-to-let term buy-to-let term
loans loans
Real estate (rent, buy 177 486 663 283 414 697
and sell)
Hospitality - 736 736 - 442 442
Health and social work - 584 584 - 430 430
Legal, accountancy and - 254 254 - 207 207
consultancy
Retail - 208 208 - 122 122
Real estate (develop) - 14 14 - 14 14
Recreation, cultural - 74 74 - 82 82
and sport
Construction - 24 24 - 36 36
Education - 7 7 - 13 13
Real estate - 4 4 - 5 5
(management of)
Investment and unit - 48 48 - 6 6
trusts
Other - 108 108 - 135 135
Total corporate and 177 2,547 2,724 283 1,906 2,189
commercial term loans
14. Legal and regulatory matters
As part of the normal course of business we are subject to legal and regulatory matters. It is not always practicable to predict the outcome, if any, of certain matters or reliably estimate any financial impact, and in such cases, a provision may not be recognised in the financial statements but a contingent liability disclosed. Any inclusion does not constitute an admission of wrongdoing or legal liability. As at 31 December 2025, we do not have any material contingent liabilities.
15. Fair value of financial instruments
31-Dec-25
With
Quoted Using significant
market observable unobservable
Carrying price inputs inputs Total fair
value Level 1 Level 2 Level 3 value
GBP'million GBP'million GBP'million GBP'million GBP'million
Assets
Loans and advances to customers 8,823 - - 8,867 8,867
Investment securities held at fair value through other 218 218 - - 218
comprehensive income
Investment securities held at amortised cost 3,942 2,641 1,250 - 3,891
Derivative financial assets 23 - 23 - 23
Liabilities
Deposits from customers 13,445 - - 13,444 13,444
Deposits from central banks 400 - - 400 400
Debt securities 684 - 780 - 780
Repurchase agreements 73 - - 73 73
31-Dec-24
With
Quoted Using significant
market observable unobservable
Carrying price inputs inputs Total fair
value Level 1 Level 2 Level 3 value
GBP'million GBP'million GBP'million GBP'million GBP'million
Assets
Loans and advances to customers 9,013 - - 8,981 8,981
Investment securities held at fair value through other 377 377 - - 377
comprehensive income
Investment securities held at amortised cost 4,113 2,857 1,122 - 3,979
Derivative financial assets 16 - 16 - 16
Liabilities
Deposits from customers 14,458 - - 14,458 14,458
Deposits from central banks 400 - - 400 400
Debt securities 675 - 711 - 711
Derivative Financial Liabilities 1 - 1 - 1
Repurchase agreements 391 - - 391 391
Information on how fair values are calculated are explained below:
Loans and advances to customers
Fair value is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the balance sheet date, adjusted for future credit losses and prepayments, if considered material.
Investment securities
The fair value of investment securities is based on either observed market prices for those securities that have an active trading market (fair value Level 1 assets) or using observable inputs (in the case of fair value Level 2 assets).
Deposits from customers
Fair values are estimated using discounted cash flows, applying current rates offered for deposits of similar remaining maturities. The fair value of a deposit repayable on demand is approximated by its carrying value.
Debt securities
Fair values are determined using the quoted market price at the balance sheet date.
Deposits from central banks/repurchase agreements
Fair values are estimated using discounted cash flows, applying current rates. Fair values approximate carrying amounts as their balances are either short-dated or are on a variable rate which aligns to the current market rate.
Derivative financial assets
The fair values of derivatives are obtained from discounted cash flow models as appropriate.
16. Earnings per share
Basic earnings per share ('EPS') is calculated by dividing the profit/(loss) attributable to ordinary shareholders of Metro Bank by the weighted average number of ordinary shares in issue during the period.
Diluted EPS has been calculated by dividing the profit attributable to our ordinary shareholders by the weighted average number of ordinary shares in issue during the year plus the weighted average number of ordinary shares that would be issued on the conversion to shares of options granted to colleagues.
2025 2024 Profit/(loss) attributable to ordinary shareholders (GBP'million) 52.4 42.5 Weighted average number of ordinary shares in issue (thousands) Basic 673,151 672,784 Adjustment for share awards 7,979 2,466 Diluted 681,130 675,250 Earnings per share (pence) Basic 7.8 6.3 Diluted 7.7 6.3
17. Non-cash items
2025 2024
GBP'million GBP'million
Interest receivable (725) (935)
Interest payable 265 558
Depreciation and amortisation 62 77
Impairment and write-offs of property, plant, equipment and intangible assets 1 44
Expected credit loss expense 14 7
Share option charge 3 2
Grant income recognised in the income statement (3) (3)
Amounts provided for (net of amounts released) (4) (8)
Gain/(loss) on sale of assets (5) (101)
Total adjustments for non-cash items (392) (359)
18. Post balance sheet events
There are no post balance sheets to note.
Reconciliation from statutory to underlying results
Impairment
and Cost
write-off Net C&I Remediation associated Underlying
of costs with basis
Year ended Statutory property, Transformation Portfolio capital
31 December basis plant, costs Sales raise
2025 GBP'million equipment costs GBP'million GBP'million
and GBP'million GBP'million GBP'million
intangible
assets GBP'million
GBP'million
Net interest 460.3 - - - - - - 460.3
income
Net fee and
commission 91.1 - - - - - - 91.1
income
Net gains on
sale of 5.2 - - - - (5.2) - -
assets
Other income 36.7 - (2.8) - - (0.2) - 33.7
Total income 593.3 - (2.8) - - (5.4) - 585.1
General
operating (429.4) - 2.8 14.4 1.2 - - (411.0)
expenses
Depreciation
and (61.7) - - - - - - (61.7)
amortisation
Impairment
and
write-offs (0.7) 0.7 - - - - - -
of PPE and
intangible
assets
Total
operating (491.8) 0.7 2.8 14.4 1.2 - - (472.7)
expenses
Expected
credit loss (14.3) - - - - - - (14.3)
expense
Profit 87.2 0.7 - 14.4 1.2 (5.4) - 98.1
before tax
Impairment
and Cost
write-off Net C&I Remediation associated Underlying
of costs with basis
Year ended Statutory property, Transformation Portfolio capital
31 December basis plant, costs Sales raise
2024 GBP'million equipment costs GBP'million GBP'million
and GBP'million GBP'million GBP'million
intangible
assets GBP'million
GBP'million
Net interest 377.9 - - - - - - 377.9
income
Net fee and
commission 93.2 - - - - - - 93.2
income
Net loss on
sale of (101.4) - - - - 101.4 - -
assets
Other income 35.6 - (3.4) - - 0.2 - 32.4
Total income 405.3 - (3.4) - - 101.6 - 503.5
General
operating (489.0) - 3.4 31.1 21.3 - 0.1 (433.1)
expenses
Depreciation
and (77.3) - - - - - - (77.3)
amortisation
Impairment
and
write-offs (44.0) 44.0 - - - - - -
of PPE and
intangible
assets
Total
operating (610.3) 44.0 3.4 31.1 21.3 - 0.1 (510.4)
expenses
Expected
credit loss (7.1) - - - - - - (7.1)
expense
Loss before (212.1) 44.0 - 31.1 21.3 101.6 0.1 (14.0)
tax
Capital information
Key metrics
31 December 31 December
2025 2024
GBP'million GBP'million
Available capital
CET1 capital 840 808
Additional Tier 1 capital 242 -
Tier 1 capital 1,082 808
Total capital 1,232 958
Total capital plus MREL 1,754 1,479
Risk-weighted assets
Total risk-weighted assets 6,711 6,442
Risk-based capital ratios as % of risk-weighted assets
CET1 ratio 12.5% 12.5%
Tier 1 ratio 16.1% 12.5%
Total capital ratio 18.4% 14.9%
Total capital plus MREL ratio 26.1% 23.0%
Additional CET1 buffer requirements as % of risk-weighted assets
Capital conservation buffer requirement 2.5% 2.5%
Countercyclical buffer requirement 2.0% 2.0%
Total of bank CET1 specific buffer requirements 4.5% 4.5%
Leverage ratio
UK leverage ratio 7.8% 5.6%
Liquidity coverage ratio
Liquidity coverage ratio 306% 337%
Leverage ratio
The table below shows our Tier 1 Capital and Total Leverage Exposure that are used to derive the UK leverage ratio. The UK leverage ratio is the ratio of Tier 1 Capital to Total Leverage exposure.
31 December 31 December
2025 2024
GBP'million GBP'million
Common equity tier 1 capital 840 808
Additional tier 1 capital 242 -
Tier 1 capital 1,082 808
UK leverage exposure 13,837 14,417
UK leverage ratio 7.8% 5.6%
Liquidity coverage ratio
The table below shows the bank's Total HQLA and total net cash outflow that are used to derive the liquidity coverage ratio.
31 December 31 December
2025 2024
GBP'million GBP'million
Total high-quality liquid assets 5,459 6,071
Total net cash outflow 1,782 1,799
Liquidity coverage ratio 306% 337%
Capital resources
The table below summarises the composition of regulatory capital on a proforma basis, including the profit for the year.
31 December 31 December
2025 2024
GBP'million GBP'million
Share capital and premium 146 144
Retained earnings 1,075 1,022
Other reserves 21 18
Intangible assets (143) (127)
Other regulatory adjustments (259) (249)
CET 1 capital 840 808
Additional Tier 1 capital 242 -
Tier 1 capital 1,082 808
Tier 2 capital 150 150
Total capital resources 1,232 958
MREL eligible debt 522 521
TCR + MREL 1,754 1,479
Risk-weighted assets
31 December 31 December
2025 2024
GBP'million GBP'million
Credit Risk 5,947 5,703
Operational Risk 759 720
Counterparty Credit Risk 5 19
Total risk-weighted assets 6,711 6,442
Our capital adequacy was in excess of the minimum required by the regulators at all times.
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(END) Dow Jones Newswires
March 04, 2026 02:00 ET (07:00 GMT)
