DJ Metro Bank Holdings PLC: Results for the half year ended 30 June 2026
Metro Bank Holdings PLC (MTRO)
Metro Bank Holdings PLC: Results for the half year ended 30 June 2026
04-Aug-2026 / 07:00 GMT/BST
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Metro Bank Holdings PLC
Unaudited half year results
Trading update H1 2026
4 August 2026
Metro Bank Holdings PLC (LSE: MTRO LN) ("Metro Bank")
Legal Entity Identifier: 984500CDDEAD6C2EDQ64
Results for the half year ended 30 June 2026
Strong performance through strategic execution
-- Underlying profit before tax of GBP61 million, the most profitable half in Metro Bank's history and a 34%
increase year-on-year
-- Record growth of 43% year-on-year in core lending as Metro Bank wins market share
-- Continued NIM expansion, with exit NIM at June 2026 of 3.25%, up 30bps year-on-year
-- Return on Tangible Equity1 of 7.5%, with clear path to target of greater than 13% in Q4 2026
-- Metro Bank maintains the lowest Cost of Deposits of any UK High Street bank
-- Reaffirming all guidance for FY 2026 and beyond, including RoTE greater than 13% in Q4 2026, greater than
15% in 2027, and greater than 18% in 2028- firmly positioning Metro Bank as one of the UK market leaders
Daniel Frumkin, Chief Executive Officer at Metro Bank, said:
"The first half of the year has been another period of strong momentum and strategic delivery for Metro Bank. Our
continued progress reflects a business executing with discipline across revenue growth, cost management and improving
returns.
"Our relationship banking model is delivering a clear competitive advantage. We continue to invest in growth, signing
three new store leases to bring Metro Bank to new communities, and adding new products and services in response to
customer demand. Alongside the lowest cost of deposits of any UK High Street bank, our growing mix of higher-yielding
corporate, commercial and specialist mortgage lending is driving stronger risk-adjusted returns.
"As we move into the next half of the year, our record-high credit approved pipeline gives us a strong platform for
further targeted lending which, along with the repricing of treasury assets, will deliver additional NIM and RoTE
uplift. We look ahead with confidence and are reaffirming all guidance, including RoTE greater than 13% in Q4 2026,
greater than 15% in 2027, and greater than 18% in 2028."
1. Statutory profit after tax attributable to ordinary shareholders as a percentage of average tangible
equity (equity excluding other equity instruments, intangible assets and deferred tax assets). Guidance statements
are predicated on modelling assumptions including interest rate curves, capital requirements, and adjustments for
material exceptional items
Key Financials
H1 H1 Change from H2 Change from
GBP in millions 2026 2025 H1 2025 2025 H2 2025
Assets GBP17,025 GBP16,428 4% GBP16,475 3%
Loans GBP9,074 GBP8,715 4% GBP8,823 3%
Deposits GBP13,216 GBP13,363 (1%) GBP13,445 (2%)
Loan to deposit ratio 69% 65% 4pp 66% 3pp
CET1 capital ratio 12.3% 12.8% (50bps) 12.5% (20bps)
Tier 1 capital ratio 15.8% 16.6% (80bps) 16.1% (30bps)
Total capital ratio (TCR) 17.9% 18.9% (100bps) 18.4% (50bps)
Total capital plus MREL ratio 25.3% 27.0% (170bps) 26.1% (80bps)
Liquidity coverage ratio 270% 315% (45pp) 306% (36pp)
H1 H1 Change from H2 Change from
GBP in millions 2026 2025 H1 2025 2025 H2 2025
Total underlying revenue2 GBP301.0 GBP286.1 5% GBP299.0 1%
Underlying profit before tax3 GBP60.6 GBP45.1 34% GBP53.0 14%
Statutory profit before tax GBP60.7 GBP43.1 41% GBP44.1 38%
Statutory profit after tax GBP49.0 GBP30.4 61% GBP39.3 25%
Net interest margin 3.18% 2.87% 31bps 3.10% 8bps
Exit NIM 3.25% 2.95% 30bps 3.17% 8bps
Lending yield 5.78% 5.67% 11bps 5.71% 7bps
Cost of deposits 0.98% 1.16% (18bps) 0.96% 2bps
Cost of risk 0.22% 0.14% 8bps 0.18% 4bps
Earnings per share 4.7p 4.5p 0.2p 3.3p 1.4p
Book value per share GBP2.26 GBP2.17 GBP0.09 GBP2.20 GBP0.06
Tangible net asset value per share GBP1.66 GBP1.61 GBP0.05 GBP1.63 GBP0.03
2. Underlying revenue excludes grant income recognised relating to the Capability & Innovation fund and netprofit/(loss) on portfolio sales 3. Underlying profit/(loss) before tax is an alternative performance measure and excludes impairment andwrite-off of property, plant & equipment (PPE) and intangible assets, transformation costs, remediation costs, andnet profit/(loss) on portfolio sales
Investor presentation
A presentation for investors and analysts will be held at 9AM (UK time) on 4 August 2026. The presentation will be webcast on:
https://webcast.openbriefing.com/metrobank-h126/
For those wishing to dial-in:
From the UK dial: +44 808 189 0158
From the US dial: +1 855 979 6654
Access code: 502331
Other global dial-in numbers: https://www.netroadshow.com/events/global-numbers?confId=93403
Financial performance for the half year ended 30 June 2026
Loans
H1 H1 Change from H2 Change from
GBP in millions
2026 2025 H1 2025 2025 H2 2025
Gross loans and advances to customers GBP9,208 GBP8,882 4% GBP8,993 2%
Less: allowance for impairment (GBP134) (GBP167) (20%) (GBP170) (21%)
Net loans and advances to customers GBP9,074 GBP8,715 4% GBP8,823 3%
Gross loans and advances to customers consists
of:
Commercial lending4 GBP4,021 GBP3,083 30% GBP3,570 13%
Specialist Mortgages lending GBP2,162 GBP1,247 73% GBP1,657 30%
Target segments GBP6,183 GBP4,330 43% GBP5,227 18%
Government-backed lending5 GBP281 GBP514 (45%) GBP369 (24%)
Consumer lending GBP71 GBP133 (47%) GBP114 (38%)
Prime Mortgages lending GBP2,673 GBP3,905 (32%) GBP3,283 (19%)
Total run-off books GBP3,025 GBP4,552 (34%) GBP3,766 (20%)
4. Includes corporate, commercial, SME and CLBILS.
5. BBLS, CBILS and RLS.
-- Balances in the Group's target lending segments of corporate, commercial and SME, and specialist
mortgages grew by 43% year-on-year, to GBP6.2 billion. Together with legacy books in run-off, which at H1 2026
totalled GBP3.0 billion, total gross loans at H1 2026 were GBP9.2 billion. Total net loans at H1 2026 were GBP9.1
billion.
-- Loan to deposit ratio at H1 2026 was 69%, providing capacity for growth.
-- Commercial lending (excluding BBLS, CBILS and RLS) increased by 30% year-on-year to GBP4.0 billion (H1
2025: GBP3.1 billion, H2 2025: GBP3.6 billion) following GBP1 billion of new gross lending in H1 2026. 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 Debt to Value (DTV) of the portfolio at H1 2026 was 67% (H1 2025: 59%, H2 2025: 67%) and the
portfolio has a coverage ratio of 1.75% (H1 2025: 2.09%, H2 2025: 2.07%)
-- Specialist Mortgages increased by 73% year-on-year to GBP2.2 billion (H1 2025: GBP1.2 billion, H2 2025: GBP1.7
billion). Together with the Prime Mortgage book in run-off, total retail mortgages were GBP4.8 billion at H1 2026
and remain the largest component of the lending book at 53%.
- The DTV of the portfolio at H1 2026 was 62% (H1 2025: 60%, H2 2025: 60%). 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 2026 remained low, at 0.22% (H1 2025: 0.14%, H2 2025: 0.18%). 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 3.9% at H1 2026 (H1 2025: 4.9%, H2 2025: 4.7%) and non-performing loans have reduced to 4.39% at H1
2026 (H1 2025: 5.42%, H2 2025: 5.14%).
-- The loan portfolio remains appropriately provisioned. The ECL provision at H1 2026 was GBP134 million with
a coverage ratio of 1.46%. The reduction in allowance for impairment half-on-half was driven by the sale of non-
performing unsecured personal loans held within our run-off portfolio.
Deposits
H1 H1 Change from H2 Change from
GBP in millions
2026 2025 H1 2025 2025 H2 2025
Demand: current accounts GBP5,717 GBP5,682 1% GBP5,862 (2%)
Demand: savings accounts GBP6,865 GBP6,991 (2%) GBP6,901 (1%)
Fixed term: savings accounts GBP634 GBP690 (8%) GBP682 (7%)
Deposits from customers GBP13,216 GBP13,363 (1%) GBP13,445 (2%)
Deposits from customers includes:
Retail customers (excluding retail GBP4,626 GBP5,000 (7%) GBP4,765 (3%)
partnerships)
SMEs6 GBP4,644 GBP4,492 3% GBP4,734 (2%)
GBP9,270 GBP9,492 (2%) GBP9,499 (2%)
Retail partnerships GBP1,616 GBP1,913 (16%) GBP1,832 (12%)
Commercial customers (excluding SMEs6) GBP2,330 GBP1,958 19% GBP2,114 10%
GBP3,946 GBP3,871 2% GBP3,946 0%
6. 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.
-- Underlying momentum in the franchise remains strong, with over 12,000 new business current accounts and
over 35,000 new personal current accounts opened in the half.
-- Metro Bank's relationship-led strategy continues to provide a strategic funding advantage, with current
accounts comprising 43% of the book. The bank continues to actively manage down high-cost non-relationship
deposits.
-- Total customer deposits ended H1 2026 at GBP13.2 billion (H1 2025: GBP13.4 billion, H2 2025: GBP13.4 billion).
The core customer deposit base continues to be predominantly Retail, with growth in SMEs and Commercial customers
in line with the Group's strategy.
-- Cost of deposits for H1 2026 was 0.98% (H1 2025: 1.16%, H2 2025: 0.96%)- the lowest of any UK High Street
bank.
-- Stores remain a key element to the Group's service offering and strategy, as an enabler of our
relationship-based approach. The Group signed three new leases in the period, in Leeds, Newcastle, and Nottingham,
and continues to actively seek new attractive locations to support our growing corporate, commercial and SME
banking offer and local communities.
Profit and Loss Account
-- Underlying profit before tax of GBP61 million for H1 2026, the highest in Metro Bank's history, and a fourth consecutive half of growth in underlying profit (H1 2025: GBP45 million, H2 2025: GBP53 million). -- Net interest margin for H1 2026 was 3.18% (H1 2025: 2.87%, H2 2025: 3.10%), with an exit net interest margin at June 2026 of 3.25%. We continue to progress in line with guidance of reaching 3.40% to 4.00% by December 2026, supported by asset rotation and maturities of low-yielding treasury assets across H2 2026. -- Underlying net interest income increased by 8% year-on-year to GBP242 million (H1 2025: GBP223 million, H2 2025: GBP237 million), reflecting the continued transition towards higher yielding assets. -- Underlying revenue increased by 5% year-on-year to GBP301 million (H1 2025: GBP286 million, H2 2025: GBP299 million). -- Underlying operating costs reduced 2% year-on-year, to GBP231 million, (H1 2025: GBP235 million, H2 2025: GBP238 million). Overall operating costs for 2026 are expected to be broadly flat to 2025, reflecting planned technology investments in H2 2026. -- Expected credit loss expense was GBP10 million for H1 2026, reflecting a continued benign credit environment (H1 2025: GBP6 million, H2 2025: GBP8 million). -- Statutory profit after tax for H1 2026 was GBP49 million (H1 2025: GBP30 million, H2 2025: GBP39 million).
Capital, Funding and Liquidity
Minimum Minimum
Position
requirement requirement
H1 20267
including buffers8 excluding buffers8
Common Equity Tier 1 (CET1) 12.3% 9.7% 5.2%
Tier 1 15.8% 11.4% 6.9%
Total Capital 17.9% 13.7% 9.2%
Total Capital plus MREL 25.3% 13.7% 9.2%
Risk Weighted Assets (GBP million) GBP7,038 - -
7. Capital figures as at 30 June 2026 include our profit for the half
8. Combined buffers
-- Capital position is well optimised for growth.
-- Metro Bank's Total Capital plus MREL ratio at H1 2026 was 25.3%, 11.6% above regulatory minimum
requirements (including buffers)
-- 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.
-- The Bank remains focused on optimising risk-adjusted returns on regulatory capital.
-- In line with strategy, total RWAs increased year-on-year to GBP7.0 billion (H1 2025: GBP6.4 billion, H2 2025:
GBP6.7 billion), reflecting continued asset rotation into higher-density corporate, commercial and SME lending. RWA
density at H1 2026 was 41% (H1 2025: 39%, H2 2025: 41%).
-- Strong liquidity and funding position maintained with all customer loans fully funded by customer
deposits. Loan to deposit ratio at H1 2026 was 69%.
-- Liquidity Coverage Ratio (LCR) at H1 2026 was 270% (H1 2025: 315%, H2 2025: 306%), with cash balances in
excess of GBP2 billion.
-- Net Stable Funding Ratio (NSFR) at H1 2026 was 155% (H1 2025: 165%, H2 2025: 161%).
-- The Treasury portfolio of GBP6.5 billion includes GBP4.1 billion of investment securities, of which 70% are
rated AAA and 30% are rated AA- all of which are Government-issued or Government-guaranteed debt. 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 1.5 years approximately GBP1.4 billion of fixed rate treasury assets will mature at an
average blended yield of just over 1%. These will be replaced by assets 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 in 2027, and 18% or greater in 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, 65-60% for 2027, and 55-50% for 2028
-- Costs for 2026 flat versus 2025
Guidance statements are predicated on modelling assumptions including interest rate curves, capital requirements, and adjustments for material exceptional items
Metro Bank Holdings PLC
Summary Balance Sheet and Profit & Loss Account
(Unaudited)
Balance Sheet YoY H1 H1 H2 GBP in millions change 2026 2025 2025 Assets Loans and advances to customers 4% GBP9,074 GBP8,715 GBP8,823 Treasury assets9 2% GBP6,530 GBP6,386 GBP6,345 Other assets10 7% GBP1,421 GBP1,327 GBP1,307 Total assets 4% GBP17,025 GBP16,428 GBP16,475 Liabilities Deposits from customers (1%) GBP13,216 GBP13,363 GBP13,445 Deposits from central banks 0% GBP400 GBP400 GBP400 Debt securities (1%) GBP675 GBP685 GBP684 Other liabilities >100% GBP1,210 GBP522 GBP462 Total liabilities 4% GBP15,501 GBP14,970 GBP14,991 Total equity 5% GBP1,524 GBP1,458 GBP1,484 Total equity and liabilities 4% GBP17,025 GBP16,428 GBP16,475
9. Comprises investment securities and cash & balances with the Bank of England. 10. Comprises property, plant & equipment, intangible assets and other assets.
Profit & Loss Account YoY H1 H1 H2
GBP in millions change 2026 2025 2025
Underlying net interest income 8% GBP241.5 GBP222.9 GBP237.4
Underlying net fee and other income (13%) GBP55.1 GBP63.4 GBP61.4
Underlying net gain on sale of assets >100% GBP4.4 (GBP0.2) GBP0.2
Total underlying revenue 5% GBP301.0 GBP286.1 GBP299.0
Underlying operating costs 2% (GBP230.6) (GBP234.7) (GBP238.0)
Expected credit loss expense (56%) (GBP9.8) (GBP6.3) (GBP8.0)
Underlying profit/(loss) before tax 34% GBP60.6 GBP45.1 GBP53.0
Impairment and write-off of property plant & equipment and
intangible assets GBP0.8
(GBP0.1) (GBP0.6)
Transformation costs (GBP1.0) (GBP7.8) (GBP6.6)
Remediation costs GBP0.3 GBP0.4 (GBP1.6)
Portfolio sales - GBP5.5 (GBP0.1)
Statutory profit/(loss) before tax 41% GBP60.7 GBP43.1 GBP44.1
Statutory taxation (GBP11.7) (GBP12.7) (GBP4.8)
Statutory profit after tax 61% GBP49.0 GBP30.4 GBP39.3
H1 H1 H2
Key metrics
2026 2025 2025
Earnings per share 4.7p 4.5p 3.3p
Net interest margin (NIM) 3.18% 2.87% 3.10%
Exit NIM 3.25% 2.95% 3.17%
Lending yield 5.78% 5.67% 5.71%
Cost of deposits 0.98% 1.16% 0.96%
Cost of risk 0.22% 0.14% 0.18%
Arrears rate 3.9% 4.9% 4.7%
Underlying cost: income ratio 77% 82% 80%
Book value per share GBP2.26 GBP2.17 GBP2.20
Tangible net asset value per share GBP1.66 GBP1.61 GBP1.63
Risk weighted assets (RWAs) GBP7,038m GBP6,437m GBP6,711m
Risk weight density (RWAs / total assets) 41% 39% 41%
Loan to deposit ratio 69% 65% 66%
Enquiries
For more information, please contact:
Metro Bank PLC Investor Relations
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 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.
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