REG-Metro Bank Holdings PLC Metro Bank Holdings PLC: Interim results for half year ended 30 June 2025
Wed 07:00
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Metro Bank Holdings PLC (MTRO)
Metro Bank Holdings PLC: Interim results for half year ended 30 June 2025
06-Aug-2025 / 07:00 GMT/BST
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Metro Bank Holdings PLC
Interim results
Trading update H1 2025
6 August 2025
Metro Bank Holdings PLC (LSE: MTRO LN) (“Metro Bank”)
Legal Entity Identifier: 984500CDDEAD6C2EDQ64
Interim results for half year ended 30 June 2025
Strategic actions drive strong financial performance
• Underlying profit before tax of £45 million in H1 2025 – more than
treble the profit in H2 2024
• Revenue up 22% year-on-year to £286 million
• Operating costs down 8% year-on-year
• Exit Net Interest Margin at June 2025 of 2.95%, up 117 bps
year-on-year
• Exit Cost of Deposits, at 1.02%, the lowest of any UK high street bank
• Record £1 billion of new corporate/ commercial/SME lending in H1 2025,
twice the lending originated in H1 2024, with a £800 million credit
approved pipeline for H2 2025
• Future benefit expected from changes to MREL regime
Daniel Frumkin, Chief Executive Officer at Metro Bank, said:
“Metro Bank’s strong performance in the first half of the year reflects
the successful execution of our strategy and decisive actions we have
taken. We trebled profits, doubled new lending to corporate, commercial
and SME customers, meaningfully reduced operating costs and optimised
funding to have the lowest cost of deposits of any UK high street bank.
As we celebrate our 15-year anniversary, our unique relationship-led
model, specialist lending expertise and expanding store network allows us
to support customers, communities and help businesses to grow. This
differentiates Metro Bank and fuels our growth.
Looking ahead, we have a clear path to growth, delivering mid-to-upper
teens RoTE by 2027, with cost of deposits and operating costs both already
below levels needed to meet 2027 targets. We are confident in reconfirming
guidance, as the actions we have already taken continue to build momentum
to 2027 and beyond.”
Key Financials
H1 H2 Change from H1 Change from
£ in millions 2025 2024 H2 2024 2024 H1 2024
Assets 16,428 £17,582 (7%) £21,489 (24%)
Loans 8,715 £9,013 (3%) £11,543 (24%)
Deposits 13,363 £14,458 (8%) £15,726 (15%)
Loan to deposit ratio 65% 62% 3pp 73% (8pp)
CET1 capital ratio 12.8% 12.5% 30bps 12.9% (10bps)
Total capital ratio (TCR) 18.9% 14.9% 400bps 15.0% 390bps
MREL ratio 27.0% 23.0% 400bps 22.2% 480bps
Liquidity coverage ratio 315% 337% (22pp) 365% (50pp)
H1 H2 Change from H1 Change from
£ in millions 2025 2024 H2 2024 2024 H1 2024
Total underlying revenue1 £286.1 £269.5 6% £234.0 22%
Underlying profit/(loss) £45.1 £12.8 252% (£26.8) 268%
before tax2
Statutory profit/(loss) £43.1 (£178.6) (124%) (£33.5) (>200%)
before tax
Statutory profit/(loss) £30.4 £75.6 (60%) (£33.1) (>100%)
after tax3
Net interest margin 2.87% 2.22% 65bps 1.64% 123bps
Lending yield 5.67% 5.48% 19bps 5.18% 49bps
Cost of deposits 1.16% 1.72% (56bps) 2.18% (102bps)
Cost of risk 0.14% 0.01% 13bps 0.10% 4bps
Earnings per share 4.5p 11.2p (6.7p) (4.9p) 9.4p
Book value per share £2.17 £1.76 £0.41 £1.64 £0.53
Tangible net asset value £1.61 £1.57 £0.04 £1.38 £0.24
per share
1. Underlying revenue excludes grant income recognised relating to the
Capability & Innovation fund
2. Underlying loss before tax is an alternative performance measure and
excludes impairment and write-off of property, plant & equipment (PPE)
and intangible assets, transformation costs, remediation costs, net
profit/(loss) on portfolio sales and costs associated with capital
raise
3. H2 2024 profit after tax reflects recognition of Deferred Tax Asset in
the period
Investor presentation
A presentation for investors and analysts will be held at 9AM (UK time) on
6 August 2025. The presentation will be webcast on:
1 https://webcast.openbriefing.com/metro-h125/
For those wishing to dial-in:
From the UK dial: +44 800 189 0158
From the US dial: +1 855 979 6654
Access code: 289883
Other global dial-in numbers:
2 https://www.netroadshow.com/events/global-numbers?confId=67110
Financial performance for the half year ended 30 June 2025
Deposits
H1 H2 Change from H1 Change
£ in millions from
2025 2024 H2 2024 2024
H1 2024
Demand: current £5,682 £5,791 (2%) £5,662 0%
accounts
Demand: savings £6,991 £7,534 (7%) £8,108 (14%)
accounts
Fixed term: savings £690 £1,133 (39%) £1,956 (65%)
accounts
Deposits from £13,363 £14,458 (8%) £15,726 (15%)
customers
Deposits from customers
includes:
Retail customers
(excluding retail £5,000 £5,968 (16%) £7,170 (30%)
partnerships)
SMEs4 £4,492 £4,442 1% £4,224 6%
£9,492 £10,410 (9%) £11,394 (17%)
Retail partnerships £1,913 £1,785 7% £1,734 10%
Commercial customers £1,958 £2,263 (13%) £2,598 (25%)
(excluding SMEs4)
£3,871 £4,048 (4%) £4,332 (11%)
4. SME defined as enterprises which employ fewer than 250 persons and
which have an annual turnover not exceeding €50 million, and/or an
annual balance sheet total not exceeding €43 million and have
aggregate deposits less than €1 million.
• Excess liquidity has been successfully managed down, with high-cost
fixed term deposits now comprising just 5% of the book, down 39%
half-on-half. Total customer deposits ended H1 2025 at £13.4 billion
(H2 2024: £14.5 billion, H1 2024: £15.7 billion). The core customer
deposit base continues to be predominantly Retail and SME.
• Cost of deposits for H1 2025 was 1.16%, with an exit cost of deposits
at June 2025 of 1.02%- the lowest of any UK high street bank. Cost of
deposits are already below the level needed to meet 2027 guidance.
• Stores remain a key element to the Group’s service offering and
strategy, as an enabler of our relationship-based approach. Metro Bank
opened a new store in Chester in July 2025, and two new stores are set
to open in Gateshead and Salford later in 2025, with all locations
selected to support both local consumers and our growing corporate,
commercial and SME banking offer and local communities.
Loans
H1 H2 Change H1 Change
£ in millions from from
2025 2024 2024
H2 2024 H1 2024
Gross loans and advances £8,882 £9,204 (3%) £11,739 (24%)
to customers
Less: allowance for (£167) (£191) (13%) (£196) (15%)
impairment
Net loans and advances to £8,715 £9,013 (3%) £11,543 (24%)
customers
Gross loans and advances
to customers consists of:
Commercial lending5 £3,083 £2,661 16% £2,437 27%
Specialist Mortgages £1,247 £700 78% - -
lending
Target segments £4,330 £3,361 29% £2,437 78%
Government-backed £514 £653 (21%) £787 (35%)
lending6
Consumer lending £133 £745 (82%) £1,003 (87%)
Prime Mortgages lending £3,905 £4,445 (12%) £7,512 (48%)
Total run-off books £4,552 £5,843 (22%) £9,302 (51%)
5. Includes CLBILS.
6. BBLS, CBILS and RLS.
• Balances in the Group’s target lending segments of corporate,
commercial and SME, and specialist mortgage lending grew by 29%
half-on-half, and 78% year-on-year, to £4.3 billion. Together with
legacy books in run-off, which at H1 2025 totalled £4.6 billion, total
gross loans at H1 2025 were £8.9 billion. Total net loans at H1 2025
were £8.7 billion.
• Loan to deposit ratio at H1 2025 was 65%, providing further capacity
for growth.
• Commercial loans (excluding BBLS, CBILS and RLS) increased by 16% at
H1 2025 to £3.1 billion (H2 2024: £2.7 billion, H1 2024: £2.4 billion)
following £1 billion of new gross lending in H1 2025- a Metro Bank
record. Growth in new corporate, commercial and SME lending continues
to be offset by attrition, particularly in commercial real estate and
portfolio buy-to-let. The DTV of the portfolio at H1 2025 was 59% (H2
2024: 56%, H1 2024: 57%) and the portfolio has a coverage ratio of
2.09% (H2 2024: 1.98%, H1 2024: 2.08%).
• Specialist Mortgages increased by 78% half-on-half to £1.2 billion.
Together with the Prime Mortgage book in run-off, total Retail
mortgages were £5.2 billion at H1 2025, and remain the largest
component of the lending book at 58% (H2 2024: 56%, H1 2024: 64%). The
Debt to Value (DTV) of the portfolio at H1 2025 was 60% (H2 2024: 59%,
H1 2024: 61%). Metro Bank’s operating model is tailored to more
complex underwriting which enables the Group to meet the needs of more
customers and scale underserved markets whilst offering improved
risk-adjusted returns.
• Cost of risk for H1 2025 remained low, at 0.14% (H2 2024: 0.01%, H1
2024: 0.10%). The credit quality of new lending continues to be strong
and the Group retains its prudent approach to provisioning.
• Overall arrears rates have improved and non-performing loans have
reduced. Arrears levels have decreased to 4.9% at H1 2025 (H2 2024:
5.6%, H1 2024: 3.8%) and non-performing loans have reduced to 5.42% at
H1 2025 (H2 2024: 5.48%, H1 2024: 3.75%).
• The loan portfolio remains highly collateralised and prudently
provisioned. The ECL provision at H1 2025 was £167 million with a
coverage ratio of 1.88%. The level of post-model overlays currently
sits at £23 million or 14% of the ECL stock, up from 10% at H2 2024.
Profit and Loss Account
• Underlying profit before tax of £45 million in H1 2025 is more than
treble H2 2024, driven by improvements in net interest income and
continued cost reduction (H2 2024: profit £13 million, H1 2024: loss
£27 million).
• Underlying costs reduced 8% half-on-half, to £235 million (H2 2024:
£256 million, H1 2024: £255 million).
• Net interest margin for H1 2025 was 2.87% (H2 2024: 2.22%, H1 2024:
1.64%), with an exit net interest margin of 2.95% already nearing
guidance of 3.00%-3.25% by December 2025. Structural improvements to
net interest margin reflect lower cost of deposits and increased asset
yields.
• Underlying net interest income increased by 8% half-on-half to £223
million (H2 2024: £206 million, H1 2024: £172 million), reflecting the
continued transition towards higher yielding assets and a reduction in
cost of deposits.
• Underlying net fee and other income has remained flat half-on-half at
£63 million (H2 2024: £63 million, H1 2024: £62 million).
• Expected credit loss expense was £6 million for H1 2025 (H2 2024: £1
million, H1 2024: £6 million) reflecting a continued benign credit
environment.
• Statutory profit before tax of £43 million for the half-year ended 30
June 2025 (H2 2024: loss of £179 million, H1 2024: loss of £34
million). Statutory profit after tax for the half was £30 million (H2
2024: £76 million (following £254 million Deferred Tax Asset
recognition), H1 2024: loss of £33 million).
Capital, Funding and Liquidity
Minimum Minimum
Position Position
requirement requirement
H1 2025 H2 2024
including buffers7 excluding
buffers7
Common Equity Tier 1 12.8% 12.5% 9.7% 5.2%
(CET1)
Tier 1 16.6% 12.5% 11.4% 6.9%
Total Capital 18.9% 14.9% 13.7% 9.2%
Total Capital + MREL 27.0% 23.0% 22.9% 18.4%
Risk Weighted Assets (£ 6,437 6,442 - -
million)
7. CRD IV buffers
• Capital position now optimised for growth following the £250 million
AT1 securities issuance and completion of £584 million unsecured
personal loan portfolio sale in H1 2025.
• Metro Bank’s MREL ratio at H1 2025 was 27.0% a 400bps improvement
half-on-half (H2 2024: 23.0%, H1 2024: 22.2%) and 410bps above
regulatory minimum requirements (including buffers).
• The Bank remains focused on optimising risk-adjusted returns on
regulatory capital.
• Total RWAs remained flat half-on-half at £6.4 billion (H2 2024: £6.4
billion), reflecting the £584 million sale of the unsecured personal
loans portfolio.
• RWA density at H1 2025 was 39% compared to 37% at H2 2024 reflecting
the continued pivot to corporate, commercial and SME lending.
• Future benefits are expected from recently announced changes in Bank
of England’s revised Statement of Policy on MREL. The Group expects to
be reclassified as a transfer firm with MREL capital equal to minimum
capital requirements. Given this, there are no current plans to raise
future MREL. The Group continues to review its liability structure on
an economic basis in the context of its ongoing regulatory and
liquidity needs.
• Strong liquidity and funding position maintained. All customer loans
are fully funded by customer deposits. Loan to deposit ratio at H1
2025 was 65%.
• Liquidity Coverage Ratio (LCR) at H1 2025 was 315% (H2 2024: 337%, H1
2024: 365%), with cash balances in excess of £2 billion.
• Net Stable Funding Ratio (NSFR) at H1 2025 was 165% (H2 2024: 169%, H1
2024: 153%).
• The Treasury portfolio of £6.4 billion includes £4.0 billion of
investment securities, of which 80% are rated AAA and 20% are rated
AA. Of the total investment securities, 93% is held at amortised cost
and 7% is held at fair value through other comprehensive income.
• Over the next 2.5 years approximately £1.5 billion of fixed rate
treasury assets will mature at an average blended yield of just over
1%. These will be replaced by asset with yields in line with or
greater than the prevailing base rate.
Existing guidance reconfirmed
ROTE • Mid-to-upper single digit in 2025, double-digit in 2026 and
mid-to-upper teens thereafter
• Continued NIM expansion driven by asset rotation, and exit NIMs
NIM in 2025, 2026 and 2027 to be between 3.00%-3.25%, 3.60%-4.00%
and 4.00%-4.50%, respectively
• Year-on-year 4-5% reduction in cost for 2025
Costs • Cost to income ratios in 2026, 2027 and 2028 to be between
75%-70%, 65%-60% and 55%-50% respectively
Metro Bank Holdings PLC
Summary Balance Sheet and Profit & Loss Account
(Unaudited)
Balance Sheet HoH H1 H2 H1
£ in millions change 2025 2024 2024
Assets
Loans and advances to customers (3%) £8,715 £9,013 £11,543
Treasury assets8 (13%) £6,386 £7,301 £8,819
Other assets9 5% £1,327 £1,268 £1,127
Total assets (7%) £16,428 £17,582 £21,489
Liabilities
Deposits from customers (8%) £13,363 £14,458 £15,726
Deposits from central banks - £400 £400 £3,050
Debt securities 1% £685 £675 £675
Other liabilities (40%) £522 £866 £934
Total liabilities (9%) £14,970 £16,399 £20,385
Total shareholder's equity 23% £1,458 £1,183 £1,104
Total equity and liabilities (7%) £16,428 £17,582 £21,489
8. Comprises investment securities and cash & balances with the Bank of
England.
9. Comprises property, plant & equipment, intangible assets and other
assets.
Profit & Loss Account HoH H1 H2 H1
£ in millions change 2025 2024 2024
Underlying net interest income 8% £222.9 £206.0 £171.9
Underlying net fee and other income 0% £63.4 £63.4 £62.0
Underlying net gains on sale of assets (>100%) (£0.2) £0.1 £0.1
Total underlying revenue 6% £286.1 £269.5 £234.0
Underlying operating costs (8%) (£234.7) (£255.8) (£254.6)
Expected credit loss expense >100% (£6.3) (£0.9) (£6.2)
Underlying profit/(loss) before tax >100% £45.1 £12.8 (£26.8)
Impairment and write-off of property
plant & equipment and intangible assets
(£0.1) (£43.7) (£0.3)
Transformation costs (£7.8) (£26.6) (£4.5)
Remediation costs £0.4 (£19.5) (£1.8)
Portfolio sale £5.5 (£101.6) -
Capital raise and refinancing - - (£0.1)
Statutory profit/(loss) before tax >100% £43.1 (£178.6) (£33.5)
Statutory taxation (£12.7) £254.2 £0.4
Statutory profit/(loss) after tax (60%) £30.4 £75.6 (£33.1)
H1 H2 H1
Key metrics
2025 2024 2024
Earnings per share 4.5p 11.2p (4.9p)
Average weighted number of basic ordinary shares 673.0m 672.9m 672.7m
in issue
Net interest margin (NIM) 2.87% 2.22% 1.64%
Lending yield 5.67% 5.48% 5.18%
Cost of deposits 1.16% 1.72% 2.18%
Cost of risk 0.14% 0.01% 0.10%
Arrears rate 4.9% 5.6% 3.8%
Underlying cost: income ratio 82% 95% 109%
Book value per share £2.17 £1.76 £1.64
Tangible net asset value per share £1.61 £1.57 £1.38
Risk weighted assets (RWAs) £6,437m £6,442m £7,239m
Risk weight density (RWAs / total assets) 39% 37% 36%
Loan to deposit ratio 65% 62% 73%
Enquiries
For more information, please contact:
Metro Bank PLC Investor Relations
Stella Gavaletakis/ Daniel Ainscough
+44 (0) 20 3402 8900
3 IR@metrobank.plc.uk
Metro Bank PLC Media Relations
Victoria Gregory
+44 (0) 7773 244608
4 pressoffice@metrobank.plc.uk
FGS Global
Mike Turner
+44 (0) 7766 360900
5 Metrobank-lon@fgsglobal.com
ENDS
About Metro Bank
Metro Bank provides corporate, commercial and SME banking and specialist
mortgage lending, alongside retail and private banking services. Metro
Bank offers relationship banking through a network of 76 stores in the UK,
telephone banking from UK-based contact centres and digital banking via
mobile app and online.
Metro Bank Holdings PLC (registered in England and Wales with company
number 14387040, registered office: One Southampton Row, London, WC1B 5HA)
is the listed entity and holding company of the Metro Bank group.
Metro Bank PLC (registered in England and Wales with company number
6419578, registered office: One Southampton Row, London, WC1B 5HA) is
authorised by the Prudential Regulation Authority and regulated by the
Financial Conduct Authority and Prudential Regulation Authority.
‘Metrobank’ is a registered trademark of Metro Bank PLC. Eligible
deposits are protected by the Financial Services Compensation Scheme. For
further information about the Scheme, refer to 6 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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Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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ISIN: GB00BMX3W479
Category Code: IR
TIDM: MTRO
LEI Code: 984500CDDEAD6C2EDQ64
OAM Categories: 1.2. Half yearly financial reports and audit
reports/limited reviews
3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 398026
EQS News ID: 2179956
End of Announcement EQS News Service
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