REG-Metro Bank Holdings PLC Metro Bank Holdings PLC: Results for year ended 31 December 2024
27/02/2025 07:15
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Metro Bank Holdings PLC (MTRO)
Metro Bank Holdings PLC: Results for year ended 31 December 2024
27-Feb-2025 / 07:00 GMT/BST
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Metro Bank Holdings PLC
Full year results
Trading update 2024
27 February 2025
Metro Bank Holdings PLC (LSE: MTRO LN)
Results for year ended 31 December 2024
Highlights
• 2024 statutory profit after tax of £42.5 million, post recognition of the deferred tax asset
• Underlying profit of £12.8 million in H2 2024, in excess of guidance of returning to profitability during Q4
2024
• Net Interest Margin at year end of 2.65%, ahead of guidance of 2.50% and up 113bps from nadir of 1.52% in
February 2024
• Cost of deposits at year end of 1.40%, down from a peak of 2.29% in February 2024
• Corporate and Commercial new loan originations grew by 71% during 2024 and by 40% from H1 2024 to H2 2024
• Credit approved pipeline for corporate/commercial/SME already at >50% of total 2024 lending
• Continued balance sheet optimisation through the sale of £2.5 billion prime residential mortgages and £584
million of unsecured personal loans
• Transformational year in 2024 has created strong momentum; reiterating existing guidance for 2025, 2026 and
2027
Daniel Frumkin, Chief Executive Officer at Metro Bank, said:
"It has been a transformational year for Metro Bank as we made substantial progress against our strategy, ending
the period ahead of guidance, profitable, and with strong momentum going forward.”
“We have successfully continued our pivot towards higher margin business in the form of corporate, commercial and
SME lending and specialist mortgages, while also taking significant steps to reduce our costs and optimising our
funding model. We have simplified and strengthened our balance sheet, and as a result, end the year with a robust
capital position.”
“Our network of stores helps us grow our target markets, with our specialist relationship banking colleagues
driving positive outcomes for customers and communities across the UK. We are delivering on our strategy. Looking
forward, we are confident that Metro Bank has a strong and compelling plan, differentiated model and clear path
forward to further growth.”
Key Financials
31 Dec 31 Dec Change from 30 Jun Change from
£ in millions 2024 2023 FY 2023 2024 H1 2024
Assets £17,582 £22,245 (21%) £21,489 (18%)
Loans £9,013 £12,297 (27%) £11,543 (22%)
Deposits £14,458 £15,623 (7%) £15,726 (8%)
Loan to deposit ratio 62% 79% (17pp) 73% (11pp)
CET1 capital ratio1 12.5% 13.1% (56bps) 12.9% (36bps)
Total capital ratio (TCR) 1 14.9% 15.1% (24bps) 15.0% (14bps)
MREL ratio1 23.0% 22.0% 100bps 22.2% 75bps
Liquidity coverage ratio 337% 332% 5pp 365% (28pp)
FY FY Change from H2 H1 Change from
£ in millions 2024 2023 FY 2024 2024 2024 H1 2024
Total underlying revenue2 £503.5 £546.5 (8%) £269.5 £234.0 15%
Underlying profit/(loss) before tax3 (£14.0) (£16.9) 17% £12.8 (£26.8) 148%
Statutory profit/(loss) before tax (£212.2) £30.5 (795%) (£178.6) (£33.5) (433%)
Statutory profit/(loss) after tax £42.5 £29.5 44% £75.6 (£33.1) 328%
Net interest margin 1.91% 1.98% (7bps) 2.22% 1.64% 58bps
Lending yield 5.33% 4.72% 61bps 5.48% 5.18% 30bps
Cost of deposits 1.95% 0.97% 98bps 1.72% 2.18% (46bps)
Cost of risk 0.06% 0.26% (20bps) 0.01% 0.10% (10bps)
Underlying EPS (2.1p) (8.4p) 75% 1.9p (3.9p) 139%
Book value per share £1.76 £1.70 4% £1.76 £1.64 7%
Tangible book value per share £1.21 £1.40 (13)% £1.21 £1.37 (12)%
1. Excluding recently announced unsecured personal loans portfolio sale. Pro forma on completion of the
performing unsecured personal loans portfolio sale in late Q1 2025 is estimated to result in a total capital
plus MREL ratio of 24.5% and CET1 ratio of 13.4%
2. Underlying revenue excludes grant income recognised relating to the Capability & Innovation fund
3. 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, costs
incurred as part of the holding company insertion and costs of the capital raise and refinancing in H2 2023
Investor presentation
A presentation for investors and analysts will be held at 9AM (UK time) on 27 February 2025. The presentation will
be webcast on:
1 https://webcast.openbriefing.com/metrobank-fy24/
For those wishing to dial-in:
From the UK dial: +44 800 358 1035
From the US dial: +1 855 979 6654
Access code: 126674
Other global dial-in numbers: 2 https://www.netroadshow.com/events/global-numbers?confId=67110
Financial performance for the year ended 31 December 2024
Deposits
31 Dec 31 Dec Change from 30 Jun Change from
£ in millions
2024 2023 FY 2023 2024 H1 2024
Demand: current accounts £5,791 £5,696 2% £5,662 2%
Demand: savings accounts £7,534 £7,827 (4%) £8,108 (7%)
Fixed term: savings accounts £1,133 £2,100 (46%) £1,956 (42%)
Deposits from customers £14,458 £15,623 (7%) £15,726 (8%)
Deposits from customers includes:
Retail customers (excluding retail £5,968 £7,235 (18%) £7,170 (17%)
partnerships)
SMEs4 £4,442 £3,782 17% £4,224 5%
£10,410 £11,017 (6%) £11,394 (9%)
Retail partnerships £1,785 £1,708 5% £1,734 3%
Commercial customers (excluding £2,263 £2,898 (22%) £2,598 (13%)
SMEs4)
£4,048 £4,606 (11%) £4,332 (6%)
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.
• Customer deposits reduced by 7% at 31 December 2024 to £14.5 billion, down £2.0 billion on February 2024 peak
of £16.5 billion (31 December 2023: £15.6 billion) reflecting the deliberate focus to reduce excess liquidity
and cost of deposits. The core customer deposit base continues to be predominantly Retail and SME. Higher cost
fixed-term deposits have reduced by 46% year-on-year as deposits from the successful Q4 2023 deposit campaign
have started to mature and are being allowed to attrite.
• Cost of deposits for the year ended December 2024 was 1.95% (31 December 2023: 0.97%), with downward momentum
and an exit cost of deposits at the end of the year of 1.40%, down 0.89% from a February 2024 peak of 2.29%.
Half-on-half cost of deposits reduced by 0.46%, from 2.18% to 1.72%.
• Stores remain a key element to the Group’s service offering and strategy as an enabler of our
relationship-based approach. Metro Bank will open two new stores in Q2 2025 in Chester and Gateshead with a
store in Salford set to open in late 2025, with all locations selected to not only support local consumers but
to also support our growing corporate, commercial and SME banking offer.
Loans
31 Dec 31 Dec Change from 30 Jun Change from
£ in millions
2024 2023 FY 2023 2024 H1 2024
Gross loans and advances to customers £9,204 £12,496 (26%) £11,739 (22%)
Less: allowance for impairment (£191) (£199) (4%) (£196) (3%)
Net loans and advances to customers £9,013 £12,297 (27%) £11,543 (22%)
Gross loans and advances to customers
consists of:
Retail mortgages £5,145 £7,818 (34%) £7,512 (32%)
Commercial lending5 £2,661 £2,443 9% £2,437 9%
Consumer lending £745 £1,297 (43%) £1,003 (26%)
Government-backed lending6 £653 £938 (30%) £787 (17%)
5. Includes CLBILS.
6. BBLS, CBILS and RLS.
• Total net loans at 31 December 2024 were £9.0 billion, down 27% from 31 December 2023, primarily driven by the
£2.5 billion sale of a prime residential mortgage portfolio in H2 2024. Post period-end, Metro Bank has also
announced the sale of a £584 million performing unsecured personal loans portfolio. The remainder of the
consumer and government-backed lending portfolios are in run-off. Loan to deposit ratio at 31 December 2024
was 62% (31 December 2023: 79%), providing opportunities to further optimise funding costs.
• Retail mortgages decreased 34% year-on-year to £5.1 billion (31 December 2023: £7.8 billion) following the
£2.5 billion mortgage loan, but remain the largest component of the lending book at 56% (31 December 2023:
63%). The Debt to Value (DTV) of the portfolio at 31 December 2024 was 59% (31 December 2023: 58%). The pivot
towards specialist mortgages continues, following recent investment to re-platform the mortgage business and
enhance the product offering. 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.
• Commercial loans (excluding BBLS, CBILS and RLS) increased by 9% at 31 December 2024 to £2,661 million (31
December 2023: £2,443 million) in line with the Group’s strategy. Growth in new corporate, commercial and SME
lending was offset by continued attrition of commercial real estate and portfolio buy-to-let portfolios. The
DTV of the portfolio at 31 December 2024 was 56% (31 December 2023: 55%) and the portfolio has a coverage
ratio of 1.98% (31 December 2023: 2.13%). Metro Bank is committed to supporting local businesses as we
continue to pivot towards corporate, commercial and SME lending.
• Year-on-year gross new Corporate and Commercial lending grew by 71% from £0.7 billion at 31 December 2023 to
£1.2 billion at 31 December 2024, demonstrating that our strategic shift into corporate, commercial and SME
lending is being delivered at pace.
• Cost of risk decreased to 0.06% at 31 December 2024 (31 December 2023: 0.26%). The overall impact of risk
profile, credit performance and macroeconomic outlook has resulted in a lower cost of risk in the year. The
credit quality of new lending continues to be strong through the current macro-economic environment and the
Group retains its prudent approach to provisioning.
• Overall arrears levels have increased to 5.6% at 31 December 2024 (31 December 2023: 3.8%). There has been
some observed crystallisation of the prior economic deterioration on customer positions; however, this was
less than previously forecasted. The main driver for the increased arrears rate is the sale of retail mortgage
assets and the run-off of the unsecured personal loans portfolio.
• Non-performing loans increased to 5.48% (31 December 2023: 3.11%) as a result of the mortgage asset sale (in
which accounts in arrears were excluded), the maturity profile of the unsecured personal loans portfolio that
is in run-off, new mortgage defaults primarily due to accounts moving into 90+ day arrears, and large single
name individually impaired Commercial cases, partially offset by BBLS claims. Excluding government-backed
lending, non-performing loans were 4.78% at 31 December 2024 (31 December 2023: 2.58%).
• The loan portfolio remains highly collateralised and prudently provisioned. The ECL provision at 31 December
2024 was £191 million with a coverage ratio of 2.07%, compared to £199 million with a coverage ratio of 1.59%
at 31 December 2023. The level of post-model overlays currently sits at 9.8% of the ECL stock, or £18.8
million. This has reduced since 31 December 2023 (11.8% of ECL stock, or £23.4 million).
Profit and Loss Account
• Returned to profitability, with underlying profit before tax in H2 2024 of £12.8 million (H1 2024: loss of
£26.8 million), primarily driven by improvements in net interest income. Underlying loss before tax at 31
December 2024 was £14.0 million (31 December 2023: £16.9 million).
• Net interest margin for the year ended December 2024 was 1.91% (31 December 2023: 1.98%), with an exit net
interest margin of 2.65%, ahead of guidance of 2.50% and up 1.13% from nadir of 1.52% in February 2024,
reflecting lower cost of deposits and increased asset yields.
• Underlying net interest income decreased by 8% YoY to £377.9 million (31 December 2023: £411.9 million) driven
by increased cost of deposits in H1 2024. Half-on-half underlying net interest income increased by 20% to
£206.0 million (H1 2024: £171.9m), reflecting the continued transition towards higher yielding assets and a
reduction in cost of deposits.
• Underlying net fee and other income decreased YoY to £125.6 million (31 December 2023: £134.6 million),
primarily reflecting increased competition within FX markets.
• Underlying costs reduced 4%, or £19.8 million year-on-year, to £510.4 million (31 December 2023: £530.2
million). Annualised run-rate cost savings of £80 million were successfully delivered in 2024, helping to
offset inflationary pressures and allowing capacity for investment necessary to support the Group’s future
growth plans.
• Statutory loss before tax of £212.1 million for the year ended 31 December 2024 (31 December 2023: profit of
£30.5 million) was primarily driven by £101.6 million loss on the mortgage sale, £44.0 million write-off of
intangible assets, £31.1 million in transformation costs and £21.3 million of remediation costs that included
the £16.7 million FCA fine.
• Statutory profit after tax of £42.5 million at 31 December 2024 (31 December 2023: £29.5 million) reflects
recognition of £254.6 million deferred tax asset in anticipation of future profitability.
Capital, Funding and Liquidity
Position Position Minimum Minimum
Pro-forma
31 December 31 December requirement requirement
Including asset sale
2024 2023 including buffers7 excluding buffers
Common Equity Tier 1 (CET1) 12.5% 13.4% 13.1% 9.2% 4.7%
Tier 1 12.5% 13.4% 13.1% 10.8% 6.3%
Total Capital 14.9% 15.9% 15.1% 12.9% 8.4%
Total Capital + MREL 23.0% 24.5% 22.0% 21.2% 16.7%
7. CRD IV buffers
• Total RWAs at 31 December 2024 were £6.4 billion (31 December 2023: £7.5 billion). The movement reflects the
£2.5 billion sale of the prime residential mortgage portfolio and actions taken to optimise the balance sheet.
RWA density was 36% compared to 30% at 31 December 2023 reflecting the pivot to corporate, commercial and SME
lending.
• Metro Bank’s MREL ratio was 23.0% as at 31 December 2024, up 100bps year-on-year from 22.0% as at 31 December
2023 (30 June 2024: 22.2%), reflecting ongoing focus on capital management whilst optimising risk-adjusted
returns on regulatory capital.
• Upon completion, the £584 million unsecured personal loans asset sale post-period is expected to result in a
pro forma improvement in total capital plus MREL of c152 bps to 24.5% and CET1 of c92 bps to 13.4%.
• The bank continues to consider opportunities to optimise the capital structure to drive growth momentum in
delivering strategy.
• Strong liquidity and funding position maintained. All customer loans are fully funded by customer deposits
with a loan-to-deposit ratio of 62% compared to 79% at the end of 2023. This provides further opportunities to
optimise funding costs.
• Liquidity Coverage Ratio (LCR) was 337% compared to 332% as at 31 December 2023, with cash balances of £2.8
billion.
• Net Stable Funding Ratio (NSFR) has increased to 169% compared to 145% as at 31 December 2023, driven by the
reduction in loan advances, primarily from the £2.5 billion mortgage portfolio sale, offset by the repayment
of TFSME with sale proceeds.
• The Treasury portfolio of £7.3 billion includes £4.5 billion of investment securities, of which 78% are rated
AAA and 22% are rated AA. Of the total investment securities, 92% is held at amortised cost and 8% is held at
fair value through other comprehensive income.
• Over the next 3 years more than £2.0 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.
• UK leverage ratio was 5.6% as at 31 December 2024 (31 December 2023: 5.3%).
Strong guidance reconfirmed.
ROTE • Mid-to-upper single digit in 2025, double digit in 2026 and mid-to-upper teens thereafter
NIM • Continued NIM expansion driven by asset rotation, and exit NIMs in 2025, 2026 and 2027 to be between
3.00%-3.25%, 3.60%-4.00% and 4.00%-4.50%, respectively
Costs • Year-on-year 4-5% reduction in cost for 2025
• Cost to income ratios in 2026, 2027 and 2028 to be between 75%-70%, 65%-60% and 55%-50% respectively
Metro Bank Holdings PLC
Summary Balance Sheet and Profit & Loss Account
(Unaudited)
YoY 31 Dec 30 Jun 31 Dec
Balance Sheet
change 2024 2024 2023
£'million £'million £'million
Assets
Loans and advances to customers (27%) £9,013 £11,543 £12,297
Treasury assets8 £7,301 £8,819 £8,770
Other assets9 £1,268 £1,127 £1,178
Total assets (21%) £17,582 £21,489 £22,245
Liabilities
Deposits from customers (7%) £14,458 £15,726 £15,623
Deposits from central banks £400 £3,050 £3,050
Debt securities £675 £675 £694
Other liabilities £866 £934 £1,744
Total liabilities (22%) £16,399 £20,385 £21,111
Total shareholder's equity £1,183 £1,104 £1,134
Total equity and liabilities £17,582 £21,489 £22,245
8. Comprises investment securities and cash & balances with the Bank of England.
9. Comprises property, plant & equipment, intangible assets and other assets.
YoY
31 Dec 31 Dec
change
Profit & Loss Account 2024 2023
£'million £'million
Underlying net interest income (8%) £377.9 £411.9
Underlying net fee and other income (5%) £125.4 £131.9
Underlying net gains on sale of assets £0.2 £2.7
Total underlying revenue (8%) £503.5 £546.5
Underlying operating costs (4%) (£510.4) (£530.2)
Expected credit loss expense 79% (£7.1) (£33.2)
Underlying profit/(loss) before tax 17% (£14.0) (£16.9)
Impairment and write-off of property plant & equipment and intangible assets (£44.0) (£4.6)
Transformation costs (£31.1) (£20.2)
Remediation costs (£21.3)
-
Mortgage sale (£101.6)
Capital raise and refinancing (£0.1) £74.0
Holding company insertion - (£1.8)
Statutory profit/(loss) before tax (£212.1) £30.5
Statutory taxation £254.6 (£1.0)
Statutory profit/(loss) after tax £42.5 £29.5
31 Dec 31 Dec
Key metrics
2024 2023
Underlying earnings per share – basic (2.1p) (8.4p)
Number of shares 672.7m 672.7m
Net interest margin (NIM) 1.91% 1.98%
Lending yield 5.33% 4.72%
Cost of deposits 1.95% 0.97%
Cost of risk 0.06% 0.26%
Arrears rate 5.6% 3.8%
Underlying cost: income ratio 101% 97%
Book value per share £1.76 £1.69
Tangible book value per share £1.21 £1.40
Half year ended
HoH 31 Dec 30 Jun 31 Dec
Profit & Loss Account
change 2024 2024 2023
£'million £'million £'million
Underlying net interest income 20% £206.0 £171.9 £190.4
Underlying net fee and other income 2% £63.4 £62.0 £68.6
Underlying net gains on sale of assets £0.1 £0.1 £1.9
Total underlying revenue 15% £269.5 £234.0 £260.9
Underlying operating costs 0% (£255.8) (£254.6) (£272.0)
Expected credit loss expense (£0.9) (£6.2) (£21.9)
Underlying profit/(loss) before tax 148% £12.8 (£26.8) (£33.0)
Impairment and write-off of property plant & equipment and intangible assets
(£43.7) (£0.3) (£4.6)
Transformation costs (£26.6) (£4.5) (£20.2)
Remediation costs (£19.5) (£1.8) (£0.8)
Mortgage sale (£101.6) - -
Capital raise and refinancing - (£0.1) £74.0
Holding company insertion - - (£0.3)
Statutory profit/(loss) before tax (£178.6) (£33.5) £15.1
Statutory taxation £254.2 £0.4 £1.7
Statutory profit/(loss) after tax £75.6 (£33.1) £16.8
Half year ended
31 Dec 30 Jun 31 Dec
Key metrics
2024 2024 2023
Underlying earnings per share – basic 1.9p (3.9p) (12.2p)
Number of shares 672.7m 672.7m 672.7m
Net interest margin (NIM) 2.22% 1.64% 1.85%
Lending yield 5.48% 5.18% 4.91%
Cost of deposits 1.72% 2.18% 1.29%
Cost of risk 0.01% 0.10% 0.34%
Arrears rate 5.6% 3.8% 3.8%
Underlying cost:income ratio 95% 109% 104%
Book value per share £1.76 £1.64 £1.70
Tangible book value per share £1.21 £1.37 £1.40
Risk weighted assets (RWAs) £6,442m £7,239m £7,533m
Risk weight density (RWAs / total assets) 36.6% 35.9% 33.9%
Enquiries
For more information, please contact:
Metro Bank PLC Investor Relations
Stella Gavaletakis
+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
Chris Sibbald
+44 7855 955 531
5 Metrobank-lon@fgsglobal.com
ENDS
About Metro Bank
Metro Bank is celebrated for its exceptional customer experience. It holds the number two spot for personal and
business service instore in the Competition and Markets Authority’s Service Quality Survey in February 2025.
Since 2012, Metro Bank has originated and approved just over £10bn in commercial lending.
The community bank offers retail, business, commercial and private banking services, and prides itself on giving
customers the choice to bank however, whenever and wherever they choose, and supporting the customers and
communities it serves. Whether that’s through its network of 76 stores; on the phone through its UK-based contact
centres; or online through its internet banking or award-winning mobile app, the bank offers customers real
choice.
Metro Bank is a multi-award-winning organisation. The Bank has also been awarded “Large Loans Mortgage Lender of
the Year”, 2024 and 2023 Mortgage Awards, accredited as a top ten Most Loved Workplace 2023, “2023 Best Lender of
the Year – UK” in the M&A Today, Global Awards, the “Inclusive Culture Initiative Award” in the 2023 Inclusive
Awards, “Diversity, Equity & Inclusion Award” and “Leader of the Year Award 2023” at the Top 1% Workplace Awards,
“Best Women Mortgage Leaders in the UK” from Elite Women 2023, “Diversity Lead of the Year”, 2023 Women in
Finance, Best Large Loan Lender, 2023 Mortgage Strategy Awards,, “Best Business Credit Card”, Forbes Advisor Best
of 2023 Awards, “Best Business Credit Card”, 2023 Moneynet Personal Finance Awards.
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 Metro Bank PLC.
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 the FSCS website www.fscs.org.uk. All Metro Bank products are subject to status and approval.
Metro Bank is an independent UK bank – it is not affiliated with any other bank or organisation (including the
METRO newspaper or its publishers) anywhere in the world. Please refer to Metro Bank using the full name.
Metro Bank Holdings PLC
Preliminary Announcement
(Unaudited)
For the year ended 31 December 2024
Chief Executive Officer’s statement
2024 has been a transformational year for Metro Bank.
We have made significant progress in creating a simpler, more agile Bank and continued, at pace, the strategic
shift towards corporate, commercial, and SME lending, and specialist mortgages – a compelling opportunity in an
underserved area of the market.
We have delivered on an ambitious transformation, delivering £80 million annualised run rate cost savings in FY
2024- primarily from reducing on-shore headcount numbers by more than 30% from 4,458 to 2,972. These cost savings
helped offset headwinds and created capacity for investment to support future growth. In Q4 2024, we announced a
new partnership with Infosys, a world leader in strategic outsourcing, to enhance digital capabilities, improve
automation, and embed further AI capabilities.
We continued to optimise the balance sheet, including a £2.5 billion sale of prime residential mortgages in Q3
2024 and a £584 million sale of unsecured personal loans announced post year-end. Both transactions are in line
with Metro Bank’s strategy to reposition its balance sheet, actively manage the asset rotation and enhance
risk-adjusted returns on capital. The transactions create additional lending capacity to enable Metro Bank to
continue its shift towards higher yielding corporate, commercial, and SME lending, and specialist mortgages.
We delivered strong growth momentum supporting our strategy, with corporate, commercial and SME gross new lending
growing by 71% year-on-year. Effective asset rotation has also allowed us to actively manage down excess
liquidity, particularly expensive fixed-term deposits, resulting in a significant reduction in cost of deposits
throughout the year. Underlying momentum in the franchise remains strong, with 110,000 new personal and 36,000 new
business current accounts opened in the year.
Successful operational execution has resulted in Metro Bank outperforming the 2024 guidance and reconfirming all
guidance previously provided at half-year results, building to best-in-class performance:
• Underlying profit of £13m in H2’24, beating guidance of profitability during the 4th quarter
• Net interest margin at year-end was 2.65%, beating guidance of 2.50%
• Cost savings delivered
• RoTE guidance reconfirmed to 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 cost of deposits, with 2025 exit run-rate expected to be
between 3.00%-3.25%, 3.75%-4.00% in 2026 and 4.00-4.50% in 2027, respectively
• Continued cost discipline and control, guiding to a 4-5% year-on-year reduction in costs for 2025. Cost to
income ratio improves to be between 75%-70% in 2026, 65%-60% in 2027 and 55%-50% in 2028
Delivery in 2024 provides strong growth momentum and proves Metro Bank’s ability to deliver on an ambitious future
strategy. By 2027, we remain committed to generating one of the best returns on tangible equity of any UK High
Street bank.
Progress on Strategic Priorities
Revenue
We made strong progress in the strategic shift toward corporate, commercial, and SME lending, and specialist
mortgages in the year. Corporate, commercial and SME gross new lending grew by 71% year-on-year, and we ended 2024
with a credit approved pipeline which was two times larger than at the start of 2024. 78% of new Corporate and
Commercial lending was non-broker led, c.30% of this came from refinancing existing customers. On average, new
originations attracted a margin in excess of 350 bps over base rate, driving year-on-year improvements in yield.
Progress in specialist mortgage originations was strong, with the launch of new propositions helping drive a
significant increase in spread over swaps on new mortgage originations. New lending, together with attrition of
legacy portfolios at lower yields, has led to a 61 bps year-on-year improvement in overall lending yield.
Following our successful deposit campaign at the end of 2023, we have observed a subsequent decline in balances as
we optimise our deposits and cost of funding. The cost of deposits at year-end of 1.40% continues to fall, down
from a peak of 2.29% in February 2024, as more expensive fixed term deposits are allowed to attrite.
The combined impact of increased lending yields and a lower cost of deposits has resulted in an exit NIM of 2.65%,
ahead of guidance of 2.50%, and up 1.13% from nadir of 1.52% in February 2024.
Cost
Over the past year, we have fundamentally transformed our cost base, reducing operating costs in line with a bank
of our size and driving towards sustained profitability. We continue to take a disciplined approach to costs, with
underlying costs down YoY by 4%, despite inflationary pressures. We have delivered £80 million of annualised run
rate cost savings in FY 2024, after reducing on-shore headcount numbers by > 30% from 4,458 to 2,972 within 12
months. We fundamentally repositioned our store and call centre propositions in line with customer usage patterns,
and enhanced cost control frameworks. We have driven efficiencies across the business. Metro Bank established a
strong strategic partnership with Infosys to enhance digital capabilities, improve automation, refine data, and
embed further AI capabilities. This collaboration has helped make the Metro Bank model more scalable.
Infrastructure
To drive our next stage of growth, we have strategically invested in platforms and capabilities. Central to this
is a partnership with Infosys which will revolutionise our digital capabilities, including actionable data
analytics, automated processes, and compelling digital platforms.
Our redesigned store offering empowers colleagues to drive growth in the SME and commercial segments. We are on
track to continue our store openings in the North of England, with new stores planned for Chester, Gateshead and
Salford in Q2 2025. The store proposition has been streamlined to drive efficiency and improve the customer
experience. Back-end processes, particularly around lending and digital customer onboarding, have also been
improved key customer interactions. Lastly, we have built a range of new products and platforms, such as online
chat and an enhanced business overdraft via mobile app which will enable customers to engage with us how they
want. We also implemented over 450 technical changes to systems, products and infrastructure – even more than last
year – along with upgrading our financial crime architecture, fraud tools, and our new first line risk function.
The bank also resolved the FCA’s enquiries into transaction monitoring systems and controls that began in 2016 and
were remediated by 2020. The conclusion of these enquiries draws a line under this legacy issue, allowing the bank
to move forward and fully focus on the future, building on the solid foundations it has already laid.
Balance sheet optimisation
We have made significant progress in restructuring our balance to align with strategic growth opportunities,
including a £2.5 billion sale of prime residential mortgages in Q3 2024 and £584 million sale of unsecured
personal loans post year-end. The mortgage sale proceeds were used to repay TFSME 1 , providing further
opportunity to continue optimising our funding capabilities. Both transactions are in line with Metro Bank’s
strategy to reposition its balance sheet, actively manage the asset rotation and enhance risk-adjusted returns on
capital.
Following the successful deposit campaign in Q4 2023, we have worked to reduce our cost of funds and excess
liquidity. Overall, customer deposits reduced by 7% at 31 December 2024 to £14.5 billion, down £2.0 billion on
February 2024 peak of £16.5 billion (31 December 2023: £15.6 billion) reflecting the deliberate focus on reducing
excess liquidity and cost of deposits. The core deposit base continues to be predominantly Retail and SME. Higher
cost fixed-term deposits have reduced by 46% year-on-year as deposits from the successful Q4 2023 deposit campaign
have started to mature and are either being allowed to attrite.
Communications
We continue to focus on engaging our colleagues, communities and other stakeholders. Our focus on delivering
excellent customer service is reflected in the latest independent Competition and Markets Authority survey where
we ranked number two for in-store service quality for retail customers, an increase from third place in August
2024. We were also placed second for service quality in stores and our business service centres for business
customers. We remain committed to maintaining a physical presence and ensuring that stores remain both accessible
and at the heart of local communities. We will be opening three new stores in 2025 in Chester, Gateshead and
Salford.
Following a year of transformation, we are a leaner organisation, and as part of our continuous improvement, we
will keep creating an environment where colleagues can grow, thrive and be their true authentic selves. We
continue to focus on our culture of promoting from within, with over 55% of the positions in the year filled by
colleagues being promoted or moving around the business. Given our strategic focus on SME/Commercial lending, we
have hired additional staff into Corporate and Commercial relationship and credit teams to drive our next stage of
growth.
Our ECB partnership went from strength to strength, as we continue to be committed to growing Women’s and Girls’
Cricket. We launched Metro Bank Girls in Cricket Fund contributing in one year to 21% increase in number of girls’
teams. We also launched our Relationship Banking specialists’ brand positioning to ensure we are uniquely
positioned to serve our Corporate, Commercial and SME customers.
Capital
Our capital position continues to strengthen, with the Bank’s MREL ratio 23.0% as at 31 December 2024, up 100bps
year-on-year from 22.0% as at 31 December 2023, reflecting the mortgage sale and ongoing focus on capital
management whilst optimising risk-adjusted returns on regulatory capital.
Post completion of the personal unsecured loan portfolio sale, the pro forma total capital plus MREL ratio will
increase from 23.0% to 24.5% and CET1 will increase from 12.5% to 13.4%. The additional lending capacity provided
by this sale will enable us to continue our shift into high yielding assets in niche and underserved markets and
become a specialist lender of choice.
We continue to consider opportunities to optimise capital structure to continue to drive growth momentum as seen
during 2024, facilitating delivery of our strategy.
1 Bank of England Term Funding Scheme with additional incentives for SMEs
Looking ahead
2024 has been a pivotal year for Metro Bank. We outperformed market guidance and delivered an ambitious
transformation plan. But we know the work is not done if we are to realise our ambition of generating one of the
best returns on tangible equity of any UK High Street bank by 2027.
As we move into 2025, we are focussed on continuing to grow higher-yielding corporate, commercial, and SME and
specialist mortgages, whilst optimising deposits to lower cost of funds and grow revenue. All while maintaining a
focus on cost discipline, and a prudent approach to credit risk. With a strong capital base, a growing customer
base, and a clear path for future growth, Metro Bank is well-positioned to capitalise on the opportunities ahead.
Finance review
Summary of the year
2024 was an important year as we pivoted our focus to commercial and specialist lending and took proactive steps
across the bank to position ourselves for further growth and future profitability in the coming years.
For the full year ended 31 December 2024, we recorded an underlying loss before tax of £14.0 million, a reduction
of 17% from £16.9 million as at 31 December 2023 reflecting the commitment to greater cost discipline and a
transition to a leaner, more agile operating model designed to most effectively support our customers and better
position the bank for profitability.
We recognised a statutory loss before tax of £212.1 million for the full year, largely driven by a one-off loss on
the sale of a £2.5 billion mortgage portfolio to NatWest Group Plc and various charges relating to the
transformation of the business and remediation costs. However, we recognised an underlying profit of £12.8 million
in H2 (H1: loss of £26.8 million) that supported a forecast indicative of future profits. We recognised a deferred
tax asset on unused tax losses and subsequently recorded a statutory profit after tax of £42.5 million for the
full year (2023: £29.5 million).
Our proactive and positive management of our balance sheet and our dedication to the cost reduction programme we
outlined at the beginning of the year support the future prosperity of a profitable bank and position us well
looking into 2025.
Income statement
2024 2023 Change
£m £m %
Underlying net interest income 377.9 411.9 (8%)
Underlying non-net interest income 125.6 134.6 (7%)
Total underlying revenue 503.5 546.5 (8%)
Underlying operating expenses (510.4) (530.2) 4%
Expected credit loss expense (7.1) (33.2) 79%
Underlying loss before tax (14.0) (16.9) 17%
Non-underlying items (198.1) 47.4 (518%)
Statutory (loss)/profit before tax (212.1) 30.5 (796%)
Taxation 254.6 (1.0) 256%
Statutory profit after tax 42.5 29.5 44%
Interest income
Interest income benefitted from a higher average base rate during the period, increasing 9% to £935.4 million
(2023: £855.7 million). Lending income continues to make up the largest proportion of our interest income though
following the sale of our mortgage portfolio has decreased marginally to £586.2 million (2023: £599.9 million).
Asset yields increased to to 4.17% (2023: 3.37%) as we pivoted towards more specialist mortgages and sold £2.5
billion of prime residential mortgages. Our remaining retail mortgages are 90% fixed with an average time to
reversion of 2.23 years (31 December 2023: 2.41 years). We expect to see further improvements to asset yields and
associated income in the years ahead as older balances roll-off and are replaced with new lending at a higher
rate.
Our commercial lending portfolio income grew, predominantly driven by our floating business loans which have seen
greater yields as a result of the higher base rate environment, as well as the continued attrition of
lower-yielding commercial real estate. The Consumer and Government-backed lending portfolios are in run-off as the
Group continues to pivot its strategy towards commercial, corporate and SME lending, and specialist mortgages.
We also saw the benefits of increased rates flowing through to our floating treasury portfolio, as well as the
fixed rate treasury assets maturing at an average blended yield of 1% and replaced by assets in line with base
rate.
Interest expense
Interest expense increased 126% to £557.5 million (2023: £443.8 million). This increase reflected an increase in
cost of deposits that followed our deposit campaign in Q4 2023. We sought to increase deposit inflows by launching
a range of products such as Instant Access accounts at competitive rates, the impact of which has materialised in
2024 where the average cost of deposits increased to 1.95% (2023: 0.97%) as a result. We actively managed down the
costly deposits in the latter half of the year reducing the average cost of deposits from 2.18% as at 30 June 2024
to 1.72% at 31 December 2024.
In January 2024, we repaid a £255 million repurchase agreement with NatWest Group Plc, reducing the associated
interest expense for the year.
We continue to see the impact of the increased cost of funding following our repricing and restructuring of debt
securities in 2023. The successful debt refinancing strengthened our balance sheet and enabled us to embed our
strategy to pivot to specialist and commercial lending throughout 2024. The launch of products such as Limited
Company Buy-to-let represented the realization of our revised strategy and the enablement to enhance future
earnings through asset growth and risk adjusted returns.
Non-interest income
Net fee and commission income has increased by £2.8 million to £93.2 million in 2024 (2023: £90.4 million),
reflecting nation-wide use of Metro Bank products including safe deposit boxes and Metro Bank cards. Both safe
deposit box income and ATM and interchange income remained fairly static at £19.0m and £40.4 million respectively
(2023: £18.2 million and £40.0 million). Service charge and other fee income grew by £1.8 million to £38.6 million
(2023: £36.8 million) providing a valuable source of income, whilst having minimal impact on our capital ratios.
Operating expenses
2024 2023
Underlying cost:income ratio 101% 97%
Statutory cost:income ratio 151% 90%
In Q4 2023, we committed to a cost reduction plan to support a return to sustainable profitability. Despite
inflationary pressures, we have seen this disciplined approach to cost management materialise into a 4%
improvement in underlying operating expenses, year on year and a decrease in general operating expenses from
£502.9 million in 2023 to £489 million in 2024.
People related costs remain our biggest contributor to operating expenses but reduced to £209.6m in 2024 (2023:
£241.2 million) following successful implementation of restructuring plans. This is offset partially by an
increase in transformation costs. We expect a similar trend going into 2025 as we move to a simpler, more agile
operating model. The provision for the restructure is recognized as a non-underlying item.
Professional fees increased by 16% to £27.7 million (2023: £23.2 million) as we prioritised digital enablement and
enhancement to deliver customer initiatives.
Information technology costs remained broadly flat at £60.1 million (2023: £59.7 million) reflecting investment
into digitizing and improving new and existing products and making internal processes more efficient.
Occupancy expenses are driven by costs associated with our continued store presence. Despite inflationary
pressures, costs remained broadly flat at £30.9 million (2023: £31.7 million) reflective of our disciplined
approach to cost management.
We seek to continuously exercise discipline around cost whilst acknowledging the costs associated with greater
investment in diversifying our product capabilities to both boost deposits and transition further into specialist
lending. We value our relationship-centric approach to banking and will continue to drive proactive cost
management whilst maintaining and growing our physical presence.
Non-underlying items
2024 2023 Change
£m £m %
Impairment and write-off of property, plant, equipment and intangible assets (44.0) (4.6) (857%)
Remediation costs (21.3) – n/a
Transformation costs (31.1) (20.2) (54%)
Mortgage portfolio sale (101.6) - n/a
Holding company insertion costs - (1.8) n/a
Cost of capital raise1 (0.1) - n/a
Non-underlying items (198.1) 47.4 (518%)
1. Relates to capital raise in Q4 2023.
We have recognised non-underlying items of £198.1 million in 2024 (2023: income of £47.4 million) driven by a loss
on the sale of a £2.5 billion mortgage portfolio, write off’s and impairments of £44 million in relation to
intangible assets, and the costs associated with restructuring.
The sale of the mortgage portfolio provides us with additional lending capacity to enable a further shift to high
yielding assets in niche markets, supporting our strategic focus to become a specialist lender of choice.
Transformation costs consist primarily of the costs associated with restructuring, specifically movements to
appropriately size the bank and
make operations and support services more agile and efficient going forward.
Remediation costs refer to any and all costs associated with legal or professional proceedings such as the sale of
the mortgage portfolio and the final conclusion of FCA enquiries.
At the end of 2024, we wrote off the outstanding net book value of a number of intangible assets as at 31 December
2024. The larger proportion of the balance related to RateSetter and AIRB platforms where we have ceased lending
through our RateSetter brand and not achieved AIRB status as originally expected.
Expected credit loss expense
ECL Allowance Coverage ratio Non-performing loan ratio
31 December 2024
£m % %
Retail mortgages 15 0.29% 3.93%
Consumer lending 108 14.43% 13.15%
Commercial 68 2.06% 6.16%
Total lending 191 2.07% 5.48%
31 December 2023
Retail mortgages 19 0.24% 1.87%
Consumer lending 108 8.33% 5.94%
Commercial 72 2.13% 4.91%
Total lending 199 1.59% 3.11%
We recognised an expected credit loss expense of £7.1 million in 2024 (2023: £33.2 million) primarily due to
improvements in the proportion of commercial lending balances in stage 2 and 3. Some deterioration has been noted
in the outstanding retail lending balances due to the macroeconomic environment including lower house prices,
increased cost of living and higher interest rates. We recognised management overlays and adjustments of £18.74
million (2023: £23.4 million) which represents 10% of ECL stock (31 December 2023: 12%). As at 31 December 2024,
our coverage ratio was 2.07% (2023: 1.59%) and we believe we remain appropriately provided at this stage in the
economic cycle.
Balance sheet
Lending
31 December
2024 2023 Change
£m £m %
Retail mortgages 5,145 7,817 (34%)
Consumer lending 745 1,297 (43%)
Commercial 3,314 3,382 (2%)
Gross lending 9,204 12,496 (26%)
ECL allowance (191) (199) 4%
Net lending 9,013 12,297 (27%)
Net loans and advances to customers ended the year at £9,013 million, down 27% from £12,297 million as at 31
December 2023, in large part driven by the sale of the mortgage portfolio. As a result, retail mortgages
represented a smaller proportion of our lending base than in previous years, 56% compared to 63% as at 31 December
2023, as we pivoted our strategy to commercial and specialist lending.
The consumer portfolio has decreased from £1,189 million at the end of 2023, to £637 million on a net basis as at
31 December 2024 driven by the cessation of lending through the RateSetter brand, further supporting our strategic
transition.
Commercial lending has reduced by a smaller margin than retail and consumer lending, representing a greater
proportion of our overall lending base, 36% as at 31 December 2024 compared to 28% as at 31 December 2023. Net
position is down to £3,246 million as at 31 December 2024 (31 December 2023: £3,310 million) driven by a run off
of government backed lending and Professional Buy to let but is offset by more core commercial lending.
Throughout 2024, we have supported our shift to commercial and specialist lending by digitalizing more products
and launching products such as Limited Company Buy-to-let. As we look forward to 2025, commercial lending will be
a focus for us specifically those parts of the market where our manual underwriting capacity present a competitive
advantage.
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 risen. We ended the year with £7,301 million of treasury assets (31
December 2023: £8,770 million), comprising £4,490 million investment securities and £2,811 million cash and
balances at the Bank of England (31 December 2023: £4,879 million and £3,891 million respectively). Our investment
securities remain high quality and liquid with 75% being either AAA-rated or gilts (31 December 2023: 75%).
Other assets
Property, plant and equipment ended the year at £711 million, down from £723 million as at 31 December 2023. No
new store openings took place in 2024 though we remain committed to identifying appropriately sized sites in the
North of England that are conveniently located for surrounding businesses. We obtained the freehold of two more
stores in 2024, a more cost-effective way of delivering our store-based service-led model.
Intangible assets have decreased to £126 million, down from £193 million in 2023, reflecting a more selective
approach to investments and write offs including the RateSetter platform in line with the cessation of our
RateSetter brand and the AIRB platform. Our investments in 2024 have included Mobile Live Chat and Online
Self-serve.
Deposits
31 December
2024 2023 Change
£m £m %
Retail customer (excluding retail partnerships) 5,968 7,235 (18%)
Retail partnership 1,785 1,708 5%
Commercial customers (excluding SMEs) 2,263 2,898 (22%)
SMEs 4,442 3,782 (17%)
Total customer deposits 14,458 15,623 (7%)
Of which:
Demand: current accounts 5,791 5,696 2%
Demand: savings accounts 7,534 7,827 (4%)
Fixed term: savings accounts 1,133 2,100 (46%)
We are committed to being a relationship-focused deposit-driven bank. We ended the year with deposits of £14,458
million (31 December 2023: £15,623 million), a decrease of 7% year on year. Macroeconomic conditions remained a
contributing factor as we entered 2024 but the deposit campaign at the end of 2023 helped to manage this reduction
whilst increasing the overall cost of deposits.
Our overall deposit base remains diversified with a 54%:46% between retail and commercial customers (31 December
2023: 57%:43%) with growth noted within the SME and retail partnership areas, a trend we expect to see continue in
2025.
Wholesale funding
In 2024, we significantly reduced our TFSME balance from £3,050 million to £400 million, utilizing the proceeds of
our mortgage portfolio sale to NatWest Group Plc to fund the reduction, to repay our holding early.
Taxation
We recorded a tax credit of £255 million (2023: £1.0 million tax charge) in the year.
We've recognised DTA on unused tax losses totalling £1,073 million which equated to a DTA of £268 million. £13
million was already recognised so the credit to the income statement in 2024 was £255 million.
The future profit projections as per the board approved long-term plan support the recognition of the deferred tax
asset. There is no time limit on the utilisation of tax losses.
Liquidity
Our liquidity position remains strong and in excess of regulatory minimum requirements despite efforts being made
to reduce the more costly deposits. We ended the year with a liquidity coverage ratio of 337% (31 December 2023:
332%) and a net stable funding ratio of 169% (31 December 2023: 145%).
We hold large amounts of high-quality liquid assets totalling £6,071 million (2023: £6,656 million). This included
£2,811 million of cash held at the Bank of England (2023: £3,891 million).
Capital
2024 2023 Change
£m £m
CET1 capital1 808 985 (18%)
RWAs 6,442 7,533 (14%)
CET1 ratio1 12.5% 13.1% (0.6%)
Total regulatory capital ratio1 14.9% 15.1% (0.2%)
Total regulatory capital + MREL ratio1 23.0% 22.0% 1.0%
UK regulatory leverage ratio1 5.6% 5.3% 0.3%
1. All the capital figures as at 31 December 2024 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.
We ended the year with CET1, total capital and total capital plus MREL ratios of 12.5%, 14.9% and 23.0%
respectively (31 December 2023: 13.1%, 15.1% and 22%), above regulatory minima, including buffers (excluding any
confidential buffers, where applicable), of 9.2%, 10.8% and 21.2%.
We noted improvements in our total capital plus MREL ratio in excess of those expected as part of the capital
raise, as we actively constrained lending in an effort to preserve capital. The sale of a portfolio of £2.5
billion of prime residential mortgages to NatWest Group PLC in Q3 24 demonstrated further commitment to Metro
Bank’s strategy to reposition its balance sheet and enhance risk-adjusted returns on capital. The transaction was
capital ratio accretive and created additional lending capacity to enable Metro Bank to continue its asset
rotation.
We ended the year with risk-weighted assets of £6,442 million (31 December 2023: £7,533 million), reflecting the
proactive steps to effectively manage our capital position for positive future growth.
Looking ahead
We took proactive steps to position ourselves for future growth throughout 2024 and will continue to build on that
progress as we enter 2025.
We will integrate our agile working model in collaboration with Infosys as we simplify and digitise our ways of
working to maintain strong cost discipline.
We will continue to prioritise a reduction in cost of deposits whilst remaining committed to positive and
meaningful relationships with our customers opening new stores and offering more specialist products.
Risk summary
This year there has been a clear risk focus on safely supporting the Bank as it executes a programme of strategic
change and transformation. Alongside our continued management of business-as-usual risks, this has positioned the
Bank to deliver its growth objectives.
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. It sets out the tools and
techniques used to manage each of our principal risks within our stated appetite.
Risk management is a key aspect of every colleague’s objectives and is embedded within our scorecard, against
which performance is
measured. We work to create an environment in which colleagues are encouraged and able to raise concerns and act
to meet all applicable legal and regulatory requirements and maintain constructive 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 2024
The 2024 risk agenda has been framed by the need to safely execute on the Bank’s transformation initiatives whilst
continuing to manage business-as-usual risks.
Whilst some of our risk exposures have changed, measures taken have ensured these have been managed within our
risk appetite. The Bank’s resilience has been maintained and we remain focused on ensuring our customers receive
good outcomes. Achieving these objectives has guided strategic decision-making and is at the heart of the value
proposition for our new partnership with Infosys.
Greater macroeconomic stability including a decline in inflation has supported a reduction in expected credit
losses, partially offset by run-off of the personal loan and credit card portfolios and limited arrears and
defaults in the retail mortgage portfolio.
Capability is being put in place to support targeted lending growth objectives, including risk expertise to safely
expand into higher yielding specialist mortgage lending and capabilities in commercial underwriting. Plans are in
place to scale this capability in line with delivery of commercial objectives.
We have continued to actively manage our capital position including through the successful sale of a portion of
our residential mortgage book in the second half of the year. This supported the Bank’s strategy to enhance
risk-adjusted returns and to increase capacity for future lending. Maintaining capital above regulatory
requirements and to support strategic growth remains a key focus for the Bank.
Work has been completed to establish and embed the Bank’s approach to meeting the FCA’s Consumer Duty. This
remains a key priority subject to ongoing close monitoring and enhancement. This year we also completed the third
operational resilience self-assessment which demonstrated further maturity in our approach and capability in line
with FCA and PRA regulatory requirements. Alongside, we have continued to comprehensively risk assess our key
third party relationships including our partnership with Infosys, the success of which is a key growth enabler.
The FCA concluded their enquiries into the Bank’s historic transaction monitoring systems and controls in place
between 2016 and 2020. Since then, the Bank has invested in transaction monitoring enhancements and management of
financial crime risk remains a key priority. Progress has been made in strengthening our financial crime controls,
including through establishing enhanced central operational and risk management capabilities. Responding to the
dynamic external threat, we have also invested further in our fraud systems and controls to safeguard our
customers and funds.
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. These are the high-level risks
we face, 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. Further details on
these four risks are set out below:
Exposure
Strategic risk can arise from an insufficiently defined, flawed, or poorly implemented
strategy resulting in the expectations of our stakeholders not being met, including our
customers, regulators and investors.
We are confident that the strategy set in 2024 lays the foundations for long term growth but
recognise that its success is dependent on our effective execution. Volatility in the
external environment, the challenge of safely exploiting opportunities for efficiency and the
possible impact of negative external sentiment are all recognised as having the potential to
push us off course.
Response
The Board completes an annual review of the strategy and Long-Term Plan, supported by a risk
Strategic risk assessment reviewed at the Risk Oversight Committee. The Executive team and Board monitor
strategy execution risks closely across all business lines and transformation initiatives.
Elevated reputational risk exposure has been monitored closely throughout the year with
proactive and coordinated responses seeing coverage and sentiment normalise by year-end.
Outlook
Through 2024 we have seen evidence that our strategy and hard work is bearing fruit, with the
bank re-entering the FTSE250 and seeing its credit rating upgraded in 2024. Supported by
stabilised inflation, focus in 2025 will be on delivering the Bank’s targeted lending growth
objectives.
Our established Risk management Framework will be applied to oversee the Bank’s evolving risk
profile and act to ensure we operate inside our agreed risk appetite. The Bank also continues
to conduct horizon scanning against emerging risks with the potential for a severe impact and
will adjust its approach accordingly.
Exposure
Capital risk exposures arise from the depletion of our capital resources which may result
from:
• increased RWAs
• losses
• changes to regulatory minima or other regulatory rules.
Our capital risk management approach is therefore focused on ensuring we can maintain
appropriate levels of capital to both meet regulatory minima and support our objectives, both
under normal and stress conditions.
Response
Our capital risk mitigation is focused on three key components:
Capital risk • a return to sustainable profitability that will allow us to generate organic capital
growth
• the continued optimisation of our balance sheet to ensure we are utilising our capital
stack efficiently
• continuing to assess the raising of external regulatory debt capital, as and when market
conditions and opportunities allow.
The Board is committed to these principles and has taken steps through 2024 to strengthen the
capital base which has positioned the Bank for sustained profitability.
Outlook
The focus for 2025 remains on supporting the Bank’s strategy through an appropriate and
efficient capital stack that allows us to lend in our target market whilst maintaining ratios
above our regulatory minima.
The Bank continually monitors and assesses external pricing for opportunities to support the
execution of our strategy whilst
ensuring it is done safely and on a sound capital footing.
Exposure
Our primary source of credit risk is through the loans, limits and advances we make available
to our customers. We have exposures across three key areas: corporate and commercial, retail
mortgages, and consumer lending.
Over the course of 2024, the macroeconomic outlook has gradually improved, and arrears and
loss outcomes have been lower than prior expectations. Inflation reduced significantly and
property prices exceeded prior forecasts. Whilst we saw some deterioration in economic
variables these were generally less severe than previously forecast.
We have observed some crystallisation of the prior economic deterioration on customer
positions, this was lower than previously forecast. As affordability for customers came under
pressure from higher interest rates, we observed an increase in arrears for the mortgage
portfolio as existing customers transitioned from low fixed rate products onto higher rates.
Although customers continue to be impacted by higher interest rates, arrears have shown signs
of stabilising. Furthermore, given the forward-looking nature of IFRS9, ECL stock was built
in prior years and has not been materially impacted by this increase in arrears.
Response
We have an appetite and credit criteria appropriate for managing lending through an economic
Credit risk cycle. We have enhanced our credit risk appetite, framework, and policies where appropriate
to support the Bank’s strategy to grow corporate and commercial lending, and drive the pivot
to specialist mortgage lending, whilst managing our exposure to risk to minimise losses.
We support customers who are in arrears, have payment shortfalls or are in financial
difficulties to obtain the most appropriate outcome for both the Bank and the customer. The
primary objectives of our policy are to ensure that appropriate mechanisms and tools are in
place to support customers during periods of financial difficulty and to minimise the
duration of the difficulty and the consequence, costs and other impacts arising.
Outlook
Our updates to risk appetite and policies puts in a strong position to deliver on the Bank’s
strategy for growth in a way that appropriately manages credit risk. The macroeconomic
outlook has improved during 2024, although risks remain as central banks manage the course of
interest rates with a background of potential trade friction from political risk, and
geopolitical instability continues from conflicts.
We utilise forward looking macroeconomic scenarios provided by Moody’s Analytics in the
assessment of provisions. The use of an independent supplier for the provision of scenarios
helps to ensure that the estimates are unbiased. The macroeconomic scenarios are assessed and
reviewed monthly to ensure appropriateness and relevance to the ECL calculation.
Exposure
We may be exposed to financial crime risk if we do not effectively identify and appropriately
mitigate the risks of criminals using our products and services for financial crime.
Financial crime risks include money laundering, sanctions violations, bribery and corruption,
facilitation of tax evasion, proliferation financing and terrorist financing.
Failure to prevent financial crime may result in harm to our customers, ourselves and third
parties. In addition, non-compliance with regulatory and legal requirements may result in
enforcement action such as regulatory fines, restrictions, or suspension of business or cost
of mandatory corrective action, which will have an adverse effect on us from a financial and
reputational perspective.
Response
Financial crime risk
We are committed to safeguarding both ourselves and our customers from financial crime. We
continue to invest in our financial crime control framework to ensure compliance with current
as well as newly issued legal and regulatory requirements. We continue to identify emerging
trends and typologies through conducting horizon scanning activity, through information
obtained from investigative and intelligence teams and through attending key industry forums
(or associations) such as those hosted by UK Finance. As required, we continue to update our
control framework to ensure emerging risks are identified and mitigated.
Outlook
Recognising the evolving landscape of financial crime risk against the backdrop of increasing
regulatory focus, we continue to invest in our financial crime control environment to prevent
financial crime and remain aligned to our legal and regulatory requirements.
Consolidated statement of comprehensive income
For the year ended 31 December 2024
Years ended 31 December
2024 2023
Notes
£’million £’million
Interest income 2 935.4 855.7
Interest expense 2 (557.5) (443.8)
Net interest income 377.9 411.9
Fee and commission income 3 98.0 95.0
Fee and commission expense 3 (4.8) (4.6)
Net fee and commission income 93.2 90.4
Net (loss)/gain on sale of assets 4 (101.4) 2.7
Other income 5 35.6 143.9
Total income 405.3 648.9
General operating expenses 6 (489.0) (502.9)
Depreciation and amortisation 11, 12 (77.3) (77.7)
Impairment and write-offs of property, plant, equipment and intangible assets 11, 12 (44.0) (4.6)
Total operating expenses (610.3) (585.2)
Expected credit loss expense 14 (7.1) (33.2)
(Loss)/profit before tax (212.1) 30.5
Taxation 7 254.6 (1.0)
Profit for the year 42.5 29.5
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 3.4 2.4
Total other comprehensive income 3.4 2.4
Total comprehensive profit for the year 45.9 31.9
Earnings per share
Basic (pence) 17 6.3 13.8
Diluted (pence) 17 6.3 13.4
Consolidated balance sheet
As at 31 December 2024
Years ended 31 December
2024 2023
Notes
£’million £’million
Cash and balances with the Bank of England 2,811 3,891
Loans and advances to customers 9 9,013 12,297
Investment securities held at fair value through other 10 377 476
comprehensive income
Investment securities held at amortised cost 10 4,113 4,403
Derivative financial assets 16 36
Property, plant and equipment 11 711 723
Intangible assets 12 126 193
Prepayments and accrued income 93 118
Deferred tax asset 7 240 -
Other assets 82 108
Total assets 17,582 22,245
Deposits from customers 14,458 15,623
Deposits from central banks 400 3,050
Debt securities 675 694
Repurchase agreements 391 1,191
Derivative financial liabilities 1 –
Lease liabilities 13 205 234
Deferred grants 13 16
Provisions 11 23
Deferred tax liability 7 - 13
Other liabilities 245 267
Total liabilities 16,399 21,111
Called-up share capital – –
Share premium 144 144
Retained earnings 1022 978
Other reserves 17 12
Total equity 1,183 1,134
Total equity and liabilities 17,582 22,245
Consolidated statements of changes in equity
For the year ended 31 December 2024
Called-up Share
Share Merger Retained FVOCI Total
share option
premium reserve earnings reserve equity
capital reserve
£’million £’million £’million £’million £’million
£’million £’million
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 held at – – – – 4 – 4
FVOCI
Total comprehensive income – - – 43 4 – 47
Equity-settled share based payment charges - - - - - 2 2
Transfer of b/f share option reserve – – – 1 – (1) -
Balance as at 31 December 2024 – 144 – 1,022 (7) 24 1,183
Balance as at 1 January 2023 – 1,964 – (1,015) (13) 20 956
Profit for the year – – – 29 – – 29
Other comprehensive income (net of tax)
relating to investment securities held at – – – – 2 – 2
FVOCI
Total comprehensive income – – – 29 2 – 31
Net share option movements – – – – – 3 3
Cancellation of Metro Bank PLC share capital – (1,964) – 1,964 – – –
and share premium
Issuance of Metro Bank Holdings PLC share – – 965 (965) – – –
capital
Bonus issuance 965 – (965) - – – –
Capital reduction of Metro Bank Holdings PLC (965) – – 965 – – –
share capital
Shares issued – 150 – – – – 150
Cost of shares issued – (6) – – – – (6)
Balance as at 31 December 2023 – 144 – 978 (11) 23 1,134
Consolidated cash flow statement
For the year ended 31 December 2024
Years ended 31 December
2024 2023
Notes
£’million £’million
Reconciliation of loss before tax to net cash flows from operating activities:
(Loss)/profit before tax (212) 31
Adjustments for non-cash items 18 (359) (376)
Interest received 948 834
Interest paid (585) (370)
Changes in other operating assets 3,320 744
Changes in other operating liabilities (4,497) (235)
Net cash (outflows)/inflows from operating activities (1,385) 628
Cash flows from investing activities
Sales, redemptions and paydowns of investment securities 1,017 1,870
Purchase of investment securities (630) (816)
Purchase of property, plant and equipment 11 (41) (12)
Purchase and development of intangible assets 12 (19) (26)
Net cash inflows from investing activities 327 1,016
Cash flows from financing activities
Repayment of capital elements of leases 13 (22) (23)
Issuance of new shares - 150
Cost of share issuance - (6)
Issuance of debt securities 0 175
Cost of debt issuance (0) (5)
Net cash (outflows)/inflows from financing activities (22) 291
Net (decrease)/increase in cash and cash equivalents (1,080) 1,935
Cash and cash equivalents at start of year 3,891 1,956
Cash and cash equivalents at end of year 2,811 3,891
1. Basis of preparation and significant accounting policies
Basis of preparation
Our unaudited condensed consolidated financial statements have been prepared using International Financial
Reporting Standards (IFRSs) as adopted by the UK. There have been no changes in the accounting policies compared
with the prior year. They were authorised by the Board for issue on 26 February 2025.
2. Net interest income
Interest income
2024 2023
£’million £’million
Cash and balances held with the Bank of England 193.1 120.9
Loans and advances to customers 586.2 599.9
Investment securities held at amortised cost 126.1 118.6
Investment securities held at FVOCI 18.3 6.8
Interest income calculated using the effective interest rate method 923.7 846.2
Derivatives in hedge relationships 11.7 9.5
Total interest income 935.4 855.7
Interest expense
2024 2023
£’million £’million
Deposits from customers 303.6 147.8
Deposits from central banks 124.2 161.3
Debt securities 84.8 55.7
Lease liabilities 12.4 13.1
Repurchase agreements 26.5 50.1
Interest expense calculated using the effective interest rate method 551.5 428.0
Derivatives in hedge relationships 6.0 15.8
Total interest expense 557.5 443.8
3. Net fee and commission income
2024 2023
£’million £’million
Service charges and other fee income 38.6 36.8
Safe deposit box income 19.0 18.2
ATM and interchange fees 40.4 40.0
Fee and commission income 98.0 95.0
Fee and commission expense (4.8) (4.6)
Total net fee and commission income 93.2 90.4
4. Net loss on sale of asset
2024 2023
£’million £’million
Investment securities held at amortised cost - 2.9
Loan portfolios (101.4) (0.2)
Total (loss)/gain on sale of assets (101.4) 2.7
Loan portfolio sales
Loss on sale relates to £2.5 billion of prime residential mortgages to NatWest Group PLC. Metro Bank completed the
sale on 30 September 2024.
5. Other income
2024 2023
£’million £’million
Foreign currency transactions 29.7 34.0
Gain on debt extinguishment - 100.0
Other income 5.9 9.9
Total other income 35.6 143.9
6. General operating expenses
2024 2023
£’million £’million
People costs 209.6 241.2
Information technology costs 60.1 59.7
Occupancy costs 30.9 31.7
Money transmission and other banking-related costs 49.3 49.2
Transformation costs 31.1 20.2
Remediation costs 21.3 –
Capability and Innovation Fund costs 3.4 2.4
Legal and regulatory fees 9.0 7.0
Professional fees 27.7 23.2
Printing, postage and stationery costs 7.5 7.2
Travel costs 1.4 1.5
Marketing costs 9.4 7.7
Costs associated with capital raise 0.1 26.0
Holding company insertion costs 0.0 1.8
Other 28.2 24.1
Total general operating expenses 489.0 502.9
7. Taxation
Tax expense
2024 2023
£’million £’million
Current tax
Current tax (0.0) (0.1)
Total current tax expense (0.0) (0.1)
Deferred tax
Origination and reversal of temporary differences (254.1) (0.5)
Effect of changes in tax rates 0.0 (0.4)
Adjustment in respect of prior years (0.5) –
Total deferred tax expense (254.6) (0.9)
Total tax expense (254.6) (1.0)
Reconciliation of the total tax expense
Effective Effective
2024 2023
tax rate tax rate
£’million £’million
% %
Accounting (loss)/profit before tax (212.1) 30.5
Tax expense at statutory tax rate of 25% (2023: 23.5%) 53.0 25.0% (7.2) 23.5%
Tax effects of:
Non-deductible expenses – depreciation on non-qualifying fixed assets (3.0) (1.4%) (2.5) 8.3%
Non-deductible expenses – investment property impairment – - – –
Non-deductible expenses – remediation – - – –
Non-deductible expenses – other (7.7) (3.6%) (0.8) 2.6%
Impact of intangible asset write-off on research and development - - 0.1 (0.3%)
deferred tax liability
Share-based payments (0.2) (0.1%) (1.2) 3.9%
Adjustment in respect of prior years 0.6 0.3% – –
Current year losses for which no deferred tax asset has been recognised - - (15.4) 50.5%
Losses offset against current year profits - - 1.1 (3.6%)
Movement in recognised deferred tax asset for unused tax losses 211.7 99.9% 1.8 (5.9%)
Effect of changes in tax rates - - (0.4) 1.3%
Income tax not taxable - - 23.5 (77.0%)
Tax expense reported in the consolidated income statement 254.6 120.0% (1.0) 3.3%
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 2024
Investment
Share- Property,
Unused securities Intangible
based plant and Total
tax losses and assets
payments equipment £’million
£’million impairments £’million
£’million £’million
£’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 income - (1) - - - (1)
31 December 2024 269 4 1 (31) (3) 240
31 December 2023
Investment
Share- Property,
Unused securities Intangible
based plant and Total
tax losses and assets
payments equipment £’million
£’million impairments £’million
£’million £’million
£’million
Deferred tax assets 14 2 1 – – 17
Deferred tax liabilities – 4 – (29) (5) (30)
Deferred tax liabilities (net) 14 6 1 (29) (5) (13)
1 January 2023 12 7 1 (26) (6) (12)
Income statement 2 (1) – (3) 1 (1)
Other comprehensive income 14 6 1 (29) (5) (13)
31 December 2023 14 2 1 – – 17
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 total unused tax losses of £1,073m, and a deferred tax asset has been recognised on these losses. The
future profit projections as per the board approved long-term plan support the recognition of the deferred tax
asset. There is no time limit on the utilisation of tax losses.
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 2024
Fair value
through Amortised
FVOCI Total
profit and cost
£’million £’million
loss £’million
£’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 bank – – 400 400
Debt securities - – 675 675
Derivative financial liabilities 1 - - 1
Repurchase agreements – – 391 391
31 December 2023
Fair value
through Amortised
FVOCI Total
profit cost
£’million £’million
and loss £’million
£’million
Assets
Loans and advances to customers – – 12,297 12,297
Investment securities – 476 4,403 4,879
Derivative financial assets 36 – – 36
Liabilities
Deposits from customers – – 15,623 15,623
Deposits from central bank – – 3,050 3,050
Debt securities – – 694 694
Repurchase agreements – – 1,191 1,191
9. Loans and advances to customers
31 December 2024 31 December 2023
Gross Net Gross Net
ECL ECL
carrying carrying carrying carrying
allowance allowance
amount amount amount amount
£’million £’million
£’million £’million £’million £’million
Consumer lending 745 (108) 637 1,297 (108) 1,189
Retail mortgages 5,145 (15) 5,130 7,817 (19) 7,798
Commercial lending 3,314 (68) 3,246 3,382 (72) 3,310
Total loans and advances to customers 9,204 (191) 9,013 12,496 (199) 12,297
Gross loans and advances by product category
31 December 31 December
2024 2023
£’million £’million
Overdrafts 39 40
Credit cards 20 28
Term loans 679 1,219
Consumer auto-finance 7 10
Total consumer lending 745 1,297
Residential owner occupied 3,692 5,851
Retail buy-to-let 1,453 1,966
Total retail mortgages 5,145 7,817
Total retail lending 5,890 9,114
Professional buy-to-let 283 465
Bounce back loans 346 524
Coronavirus business interruption loans 47 86
Recovery loan scheme1 260 328
Core commercial lending 1,599 1,341
Commercial term loans 2,535 2,744
Overdrafts and revolving credit facilities 220 172
Credit cards 7 4
Asset and invoice finance 552 462
Total commercial lending 3,314 3,382
Gross loans and advances to customers 9,204 12,496
Recovery loan scheme includes £45 million acquired from third parties under forward flow arrangements (31 December
2023: £70 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
2023
2024
£’million
£’million
Investment securities held at FVOCI 377 476
Investment securities held at amortised cost 4,113 4,403
Total investment securities 4,490 4,879
Investment securities held at FVOCI
31 December
31 December
2023
2024
£’million
£’million
Sovereign bonds 149 220
Residential mortgage-backed securities 0 -
Covered bonds 83 112
Multi-lateral development bank bonds 145 144
Total investment securities held at FVOCI 377 476
Investment securities held at amortised cost
31 December
31 December
2023
2024
£’million
£’million
Sovereign bonds 875 938
Residential mortgage-backed securities 876 954
Covered bonds 478 594
Multi-lateral development bank bonds 1,576 1,729
Asset backed securities 308 188
Total investment securities held at amortised cost 4,113 4,403
11. Property, plant and equipment
Freehold Fixtures,
Investment Leasehold Right-of-use
land and fittings and IT Hardware Total
property improvements assets
buildings equipment £’million £’million
£’million £’million £’million
£’million £’million
Cost
1 January 2024 12 256 386 23 10 279 966
Additions 0 1 37 0 2 1 41
Disposals – - – – – (25) (25)
Transfers – (13) 13 – – – –
31 December 2024 12 244 436 23 12 255 982
Accumulated depreciation
1 January 2024 8 79 42 21 4 89 243
Depreciation charge 0 5 12 1 4 12 34
Impairments - - - - - 1 1
Disposals – (0) – – – (7) (7)
Transfers – 3 (3) – – – -
31 December 2024 8 87 51 22 8 95 271
Net book value 4 157 385 1 4 160 711
Freehold Fixtures,
Investment Leasehold Right-of-use
land and fittings and IT Hardware Total
property improvements assets
buildings equipment £’million £’million
£’million £’million £’million
£’million £’million
Cost
1 January 2023 12 261 372 22 8 283 958
Additions – – 9 1 2 – 12
Disposals – – – – – (4) (4)
Transfers – (5) 5 – – – –
31 December 2023 12 256 386 23 10 279 966
Accumulated depreciation
1 January 2023 8 69 34 20 2 77 210
Depreciation charge – 13 5 1 2 13 34
Disposals – – – – – (1) (1)
Transfers – (3) 3 – – – –
31 December 2023 8 79 42 21 4 89 243
Net book value 4 177 344 2 6 190 723
12. Intangible assets
Goodwill Brands Software Total
£’million £’million £’million £’million
Cost
1 January 2024 10 2 355 367
Additions – – 19 19
Write-offs – – (85) (85)
31 December 2024 10 2 289 301
Accumulated amortisation
1 January 2024 – 1 173 174
Amortisation charge – - 43 43
Write-offs – – (42) (42)
31 December 2024 – 1 174 175
Net book value 10 1 115 126
Goodwill Brands Software Total
£’million £’million £’million £’million
Cost
1 January 2023 10 2 338 350
Additions – – 26 26
Write-offs – – (9) (9)
31 December 2023 10 2 355 367
Accumulated amortisation
1 January 2023 – – 134 134
Amortisation charge – 1 43 44
Write-offs – – (4) (4)
31 December 2023 – 1 173 174
Net book value 10 1 182 193
13. Leases
Lease liabilities
2024 2023
£’million £’million
1 January 234 248
Additions and modifications 1 –
Disposals (20) (4)
Lease payments made (22) (23)
Interest on lease liabilities 12 13
31 December 205 234
Minimum lease payments
31 December 31 December
2024 2023
£’million £’million
Within one year 20 22
Due in one to five years 74 83
Due in more than five years 101 145
Total 195 250
14. Expected credit losses and credit risk
Expected credit loss expense
2024 2023
£’million £’million
Retail mortgages1 (4) (1)
Consumer lending1 (0) 33
Commercial lending1 (4) (20)
Investment securities - 1
Write-offs and other movements 15 20
Total expected credit loss expense 7 33
1. Represents the movement in ECL stock during the year and therefore excludes write-offs which are shown
separately.
Loss allowance
Total loans and advances to customers
Gross carrying amount Loss allowance Net carrying amount
£’million Stage 1 Stage Stage POCI Total Stage Stage Stage POCI Total Stage 1 Stage Stage POCI Total
2 3 1 2 3 2 3
1 January 2024 10,596 1,511 389 0 12,496 (63) (43) (93) – (199) 10,533 1,468 296 0 12,297
Transfers
to/(from) Stage 385 (368) (17) - - (11) 10 1 - (0) 374 (358) (16) - -
11
Transfers
to/(from) Stage (409) 416 (7) - - 2 (2) - - - (407) 414 (7) - -
2
Transfers
to/(from) Stage (192) (100) 292 - - 4 7 (11) - - (188) (93) 281 - -
3
Net
remeasurement - - - - - 9 (14) (40) - (45) 9 (14) (40) - (45)
due to
transfers2
New lending3 1,716 147 1 – 1,864 (11) (3) (1) – (15) 1,705 144 - – 1,849
Repayments,
additional
drawdowns and (619) (120) (33) (1) (773) - - - - - (619) (120) (33) (1) (773)
interest
accrued
Derecognitions4 (3,755) (507) (121) - (4,383) 11 11 20 - 42 (3,744) (496) (101) - (4,341)
Changes to
model - - - - - 20 5 - 1 26 20 5 - 1 26
assumptions5
31 December 7,722 979 504 (1) 9,204 (39) (29) (124) 1 (191) 7,683 950 380 - 9,013
2024
Off-balance
sheet items
Commitments and 718 - 718
guarantees6
Gross carrying amount Loss allowance Net carrying amount
£’million Stage 1 Stage Stage POCI Total Stage Stage Stage POCI Total Stage 1 Stage Stage POCI Total
2 3 1 2 3 2 3
1 January 2023 10,849 2,088 352 – 13,289 (66) (51) (70) – (187) 10,783 2,037 282 – 13,102
Transfers
to/(from) Stage 872 (857) (15) - - (15) 15 - - - 857 (842) (15) - -
11
Transfers
to/(from) Stage (581) 589 (8) - - 4 (6) 2 - - (577) 583 (6) - -
2
Transfers
to/(from) Stage (170) (71) 241 - - 3 4 (7) - - (167) (67) 234 - -
3
Net
remeasurement - - - - - 12 (13) (38) - (39) 12 (13) (38) - (39)
due to
transfers2
New lending3 2,060 239 16 – 2,315 (18) (6) (6) – (30) 2,042 233 10 – 2,285
Repayments,
additional
drawdowns and (685) (172) (40) - (897) - - - - - (685) (172) (40) - (897)
interest
accrued
Derecognitions4 (1,749) (305) (157) – (2,211) 13 10 26 – 49 (1,736) (295) (131) – (2,162)
Changes to
model - - - - - 4 4 - - 8 4 4 - -
assumptions5 8
31 December 10,596 1,511 389 – 12,496 (63) (43) (93) – (199) 10,533 1,468 296 – 12,297
2023
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
£’million Stage 1 Stage Stage POCI Total Stage Stage Stage POCI Total Stage 1 Stage Stage POCI Total
2 3 1 2 3 2 3
1 January 2024 6,887 784 146 - 7,817 (7) (6) (6) - (19) 6,880 778 140 – 7,798
Transfers
to/(from) Stage 146 (138) (8) - - (1) 1 - - - 145 (137) (8) - -
1
Transfers
to/(from) Stage (171) 173 (2) - - - - - - - (171) 173 (2) - -
2
Transfers
to/(from) Stage (53) (46) 99 - - - 1 (1) - - (53) (45) 98 - -
3
Net
remeasurement - - - - - 1 (1) (2) - (2) 1 (1) (2) - (2)
due to
transfers
New lending 728 126 - - 854 (1) (2) - – (3) 727 124 - - 851
Repayments,
additional
drawdowns and (113) (12) 1 - (124) - - - - - (113) (12) 1 - (124)
interest
accrued
Derecognitions (3,066) (303) (33) - (3,402) 3 2 2 - 7 (3,063) (301) (31) - (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
Gross carrying amount Loss allowance Net carrying amount
£’million Stage Stage Stage POCI Total Stage Stage Stage POCI Total Stage Stage Stage POCI Total
1 2 3 1 2 3 1 2 3
1 January 2023 6,195 1,343 111 – 7,649 (6) (11) (3) – (20) 6,189 1,332 108 – 7,629
Transfers to/(from) 745 (737) (8) – – (6) 6 – – – 739 (731) (8) – –
Stage 1
Transfers to/(from) (193) 199 (6) – – – – – – – (193) 199 (6) – –
Stage 2
Transfers to/(from) (38) (29) 67 – – – – – – – (38) (29) 67 – –
Stage 3
Net remeasurement due – – – – – 5 (2) (2) – 1 5 (2) (2) – 1
to transfers
New lending 1,195 147 1 – 1,343 (1) (1) – – (2) 1,194 146 1 – 1,341
Repayments, additional
drawdowns (177) (18) – – (195) – – – – – (177) (18) – – (195)
and interest accrued
Derecognitions (840) (121) (19) – (980) 1 1 – – 2 (839) (120) (19) – (978)
Changes to model – – – – – – 1 (1) – – – 1 (1) – -
assumptions
31 December 2023 6,887 784 146 – 7,817 (7) (6) (6) – (19) 6,880 778 140 – 7,798
Consumer lending
Gross carrying amount Loss allowance Net carrying amount
£’million Stage Stage Stage POCI Total Stage Stage Stage POCI Total Stage Stage Stage POCI Total
1 2 3 1 2 3 1 2 3
1 January 2024 906 314 77 - 1,297 (26) (16) (66) - (108) 880 298 11 - 1,189
Transfers to/(from) 80 (79) (1) - - (3) 3 - - - 77 (76) (1) - -
Stage 1
Transfers to/(from) (74) 74 - - - 1 (1) - - - (73) 73 - - -
Stage 2
Transfers to/(from) (27) (14) 41 - - 1 4 (5) - - (26) (10) 36 - -
Stage 3
Net remeasurement due - - - - - 2 (4) (25) - (27) 2 (4) (25) - (27)
to transfers
New lending 4 - - - 4 - - - - - 4 - - – 4
Repayments, additional
drawdowns and interest (226) (83) (10) (1) (320) - - - - - (226) (83) (10) (1) (320)
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 2024 496 153 97 (1) 745 (12) (9) (88) 1 (108) 484 144 9 - 637
Gross carrying amount Loss allowance Net carrying amount
£’million Stage Stage Stage POCI Total Stage Stage Stage POCI Total Stage Stage Stage POCI Total
1 2 3 1 2 3 1 2 3
1 January 2023 1,180 250 50 – 1,480 (21) (12) (42) – (75) 1,159 238 8 – 1,405
Transfers to/(from) 34 (34) – – – (2) 2 – – – 32 (32) – – –
Stage 1
Transfers to/(from) (182) 182 – – – 2 (2) – – – (180) 180 – – –
Stage 2
Transfers to/(from) (35) (9) 44 – – 1 2 (3) – – (34) (7) 41 – –
Stage 3
Net remeasurement due – – – – – 2 (6) (28) – (32) 2 (6) (28) – (32)
to transfers
New lending 311 78 7 – 396 (9) (4) (6) – (19) 302 74 1 – 377
Repayments, additional
drawdowns (217) (111) (10) – (338) – – – – – (217) (111) (10) – (338)
and interest accrued
Derecognitions (185) (42) (14) – (241) 3 2 12 – 17 (182) (40) (2) – (224)
Changes to model – – – – – (2) 2 1 – 1 (2) 2 1 – 1
assumptions
31 December 2023 906 314 77 – 1,297 (26) (16) (66) – (108) 880 298 11 – 1,189
Commercial lending
Gross carrying amount Loss allowance Net carrying amount
£’million Stage Stage Stage POCI Total Stage Stage Stage POCI Total Stage Stage Stage POCI Total
1 2 3 1 2 3 1 2 3
1 January 2024 2,803 413 166 – 3,382 (30) (21) (21) – (72) 2,773 392 145 – 3,310
Transfers to/(from) 159 (151) (8) – - (7) 6 1 – - 152 (145) (7) – -
Stage 1
Transfers to/(from) (164) 169 (5) – - 1 (1) - – - (163) 168 (5) – -
Stage 2
Transfers to/(from) (112) (40) 152 – - 3 2 (5) – - (109) (38) 147 – -
Stage 3
Net remeasurement due – – – - - 6 (9) (13) – (16) 6 (9) (13) - (16)
to transfers
New lending 984 21 1 – 1,006 (10) (1) (1) – (12) 974 20 - – 994
Repayments, additional
drawdowns (280) (25) (24) - (329) – – – – – (280) (25) (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 2024 2,868 242 204 - 3,314 (23) (16) (29) - (68) 2,845 226 175 - 3,246
Gross carrying amount Loss allowance Net carrying amount
£’million Stage Stage Stage POCI Total Stage Stage Stage POCI Total Stage Stage Stage POCI Total
1 2 3 1 2 3 1 2 3
1 January 2023 3,474 495 191 – 4,160 (39) (28) (25) – (92) 3,435 467 166 – 4,068
Transfers to/(from) 93 (86) (7) – – (7) 7 – – – 86 (79) (7) – –
Stage 1
Transfers to/(from) (206) 208 (2) – – 2 (4) 2 – – (204) 204 – – –
Stage 2
Transfers to/(from) (97) (33) 130 – – 2 2 (4) – – (95) (31) 126 – –
Stage 3
Net remeasurement due – – – – – 5 (5) (8) – (8) 5 (5) (8) – (8)
to transfers
New lending 554 14 8 – 576 (8) (1) – – (9) 546 13 8 – 567
Repayments, additional
drawdowns (291) (43) (30) – (364) – – – – – (291) (43) (30) – (364)
and interest accrued
Derecognitions (724) (142) (124) – (990) 9 7 14 – 30 (715) (135) (110) – (960)
Changes to model – – – – – 6 1 – – 7 6 1 – – 7
assumptions
31 December 2023 2,803 413 166 – 3,382 (30) (21) (21) – (72) 2,773 392 145 – 3,310
Credit risk exposures
Retail mortgages
31 December 2024 31 December 2023
Stage 1 Stage 2 Stage 3 POCI Stage 1 Stage 2 Stage 3 POCI
£’million 12-month Lifetime Lifetime Lifetime Total 12-month Lifetime Lifetime Lifetime Total
ECL ECL ECL ECL ECL ECL ECL ECL
Up to date 4,356 504 57 – 4,917 6,885 695 37 – 7,617
1 to 29 days past due 2 21 11 – 34 2 28 10 – 40
30 to 89 days past due – 59 21 – 80 – 61 16 – 77
90+ days past due – – 114 – 114 – – 83 – 83
Gross carrying amount 4,358 584 203 – 5,145 6,887 784 146 – 7,817
Consumer lending
31 December 2024 31 December 2023
Stage 1 Stage 2 Stage 3 POCI Stage 1 Stage 2 Stage 3 POCI
£’million 12-month Lifetime Lifetime Lifetime Total 12-month Lifetime Lifetime Lifetime Total
ECL ECL ECL ECL ECL ECL ECL ECL
Up to date 496 141 2 (1) 638 900 297 3 – 1,200
1 to 29 days past due 0 2 1 – 3 6 2 – – 8
30 to 89 days past due 0 10 5 – 15 – 15 7 – 22
90+ days past due 0 0 89 – 89 – – 67 – 67
Gross carrying amount 496 153 97 (1) 745 906 314 77 – 1,297
Commercial lending
31 December 2024 31 December 2023
Stage 1 Stage 2 Stage 3 POCI Stage 1 Stage 2 Stage 3 POCI
£’million 12-month Lifetime Lifetime Lifetime Total 12-month Lifetime Lifetime Lifetime Total
ECL ECL ECL ECL ECL ECL ECL ECL
Up to date 2,841 205 86 - 3,132 2,768 350 83 – 3,201
1 to 29 days past due 27 16 2 – 45 35 24 5 – 64
30 to 89 days past due – 21 60 – 81 – 39 20 – 59
90+ days past due – – 56 – 56 – – 58 – 58
Gross carrying amount 2,868 242 204 - 3,314 2,803 413 166 – 3,382
Credit risk concentration
Retail mortgage lending by repayment type
31 December 2024 31 December 2023
£’million £’million
Retail owner Retail Total Retail owner Retail Total
occupied buy-to-let retail mortgages occupied buy-to-let retail mortgages
Interest only 1,330 1,398 2,728 1,933 1,878 3,811
Capital and 2,362 55 2,417 3,918 88 4,006
repayment
Total retail 3,692 1,453 5,145 5,851 1,966 7,817
mortgage lending
Retail mortgage lending by geographic exposure
31 December 2024 31 December 2023
£’million £’million
Retail owner Retail Total Retail owner Retail Total
occupied buy-to-let retail mortgages occupied buy-to-let retail mortgages
Greater London 1,324 808 2,132 2,040 1,091 3,131
South-east 975 283 1,258 1,564 381 1,945
South-west 313 63 376 487 87 574
East of England 379 114 493 590 150 740
North-west 155 44 199 268 65 333
West Midlands 154 47 201 240 71 311
Yorkshire and the 107 25 132 185 32 217
Humber
East Midlands 104 40 144 180 53 233
Wales 67 13 80 111 17 128
North-east 34 7 41 60 8 68
Scotland 80 9 89 126 11 137
Total retail mortgage 3,692 1,453 5,145 5,851 1,966 7,817
lending
Retail mortgage lending by DTV
31 December 2024 31 December 2023
£’million £’million
Retail owner Retail Total Retail owner Retail Total
occupied buy-to-let retail mortgages occupied buy-to-let retail mortgages
Less than 50% 1,282 263 1,545 1,994 439 2,433
51–60% 601 210 811 1,069 375 1,444
61–70% 611 417 1,028 1,044 642 1,686
71–80% 761 543 1,304 1,100 493 1,593
81–90% 397 16 413 550 16 566
91–100% 39 3 42 89 – 89
More than 100% 1 1 2 5 1 6
Total retail 3,692 1,453 5,145 5,851 1,966 7,817
mortgage lending
Commercial lending – excluding BBLS by repayment type
31 December 2024 31 December 2023
£’million £’million
Professional Other Total commercial term Professional Other Total commercial
loans term loans
buy-to-let term loans buy-to-let term loans
Interest only 270 393 663 438 222 660
Capital and repayment 13 1,513 1,526 27 1,533 1,560
Total commercial term 283 1,906 2,189 465 1,755 2,220
loans
Commercial term lending – excluding BBLS by geographic exposure
31 December 2024 31 December 2023
£’million £’million
Professional Other Total commercial term Professional Other Total commercial
loans term loans
buy-to-let term loans buy-to-let term loans
Greater London 181 813 994 298 880 1,178
South-east 48 334 382 88 340 428
South-west 10 90 100 15 111 126
East of England 20 200 220 31 122 153
North-west 7 115 123 11 106 117
West Midlands 3 185 188 4 101 105
Yorkshire and the Humber 2 11 13 2 17 19
East Midlands 6 55 60 9 44 53
Wales 2 4 6 3 8 11
North-east 2 73 75 3 19 22
Scotland 1 1 2 – 5 5
Northern Ireland - 3 3 1 2 3
National 1 22 23 0 - -
Total commercial term 283 1,906 2,189 465 1,755 2,220
loans
Commercial term lending – excluding BBLS by sector exposure
31 December 2024 31 December 2023
£’million £’million
Professional Other Total commercial Professional Other Total commercial
term loans term loans
buy-to-let term loans buy-to-let term loans
Real estate (rent, buy and 283 414 697 465 509 974
sell)
Hospitality – 442 442 – 368 368
Health and social work – 430 430 – 298 298
Legal, accountancy and – 207 207 – 150 150
consultancy
Retail – 122 122 – 136 136
Real estate (develop) – 14 14 – 14 14
Recreation, cultural and sport – 82 82 – 72 72
Construction – 36 36 – 48 48
Education – 13 13 – 19 19
Real estate (management of) – 5 5 – 7 7
Investment and unit trusts – 6 6 – 7 7
Other – 135 135 – 127 127
Total commercial term loans 283 1,906 2,189 465 1,755 2,220
Commercial term lending – excluding BBLS by DTV
31 December 2023 31 December 2022
£’million £’million
Professional Other Total commercial Professional Other Total commercial
term loans term loans
buy-to-let term loans buy-to-let term loans
Less than 50% 81 578 659 160 707 867
51–60% 39 414 453 59 319 378
61–70% 59 275 334 105 185 290
71–80% 64 65 129 76 79 155
81–90% 38 82 120 60 21 81
91–100% 1 45 46 2 11 13
More than 100% 1 447 448 3 433 436
Total commercial 283 1,906 2,189 465 1,755 2,220
term loans
15. Legal and regulatory matters
As part of the normal course of business we are subject to legal and regulatory matters. The matters outlined
below represent contingent liabilities and as such at the reporting date no provision has been made for any of
these cases within the financial statements. This is because, based on the facts currently known, it is not
practicable to predict the outcome, if any, of these matters or reliably estimate any financial impact. Their
inclusion does not constitute any admission of wrongdoing or legal liability.
Magic Money Machine litigation
Arkeyo LLC (“Arkeyo”), a software company based in the United States, filed a civil suit against us in June 2017
in the United States District Court for the Eastern District of Pennsylvania alleging, among other matters, that
we misappropriated certain of Arkeyo’s trade secret technology relating to money counting machines (i.e., our
Magic Money Machines). Arkeyo has sought damages in respect of a number of claims and attempted to serve the US
proceedings on us in the United Kingdom. This claim was decided in our favour on jurisdictional grounds. However,
Arkeyo has filed a new claim with a stated value of over £24 million. We believe Arkeyo LLC’s claims are without
merit and are vigorously defending the claim.
16. Fair value of financial instruments
31 December 2024
With
Quoted Using
significant
Carrying market observable Total fair
unobservable
value price inputs value
inputs
£’million Level 1 Level 2 £’million
Level 3
£’million £’million
£’million
Assets
Loans and advances to customers 9,013 - - 8,982 8,982
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 – – 14,459 14,459
Deposits from central bank 400 – – 400 400
Debt securities 675 – 711 – 711
Derivative financial liabilities 1 - 1 - 1
Repurchase agreements 391 – – 391 391
31 December 2023
With
Quoted Using
significant
Carrying market observable Total fair
unobservable
value price inputs value
inputs
£’million Level 1 Level 2 £’million
Level 3
£’million £’million
£’million
Assets
Loans and advances to customers 12,297 – – 12,156 12,156
Investment securities held at fair value through other 476 476 – – 476
comprehensive income
Investment securities held at amortised cost 4,403 3,143 1,072 – 4,215
Derivative financial assets 36 – 36 – 36
Liabilities
Deposits from customers 15,623 – – 15,622 15,622
Deposits from central bank 3,050 – – 3,050 3,050
Debt securities 694 – 585 – 585
Repurchase agreements 1,191 – – 1,191 1,191
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).
Financial assets held at fair value through profit and loss
The financial assets at fair value through profit and loss relate to the loans and advances previously assumed by
the RateSetter provision fund. They are measured at the fair value of the amounts that we expect to recover on
these loans.
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 liabilities
The fair values of derivatives are obtained from discounted cash flow models as appropriate.
17. Earnings per share
Basic earnings per share (‘EPS’) is calculated by dividing the (loss)/profit attributable to ordinary equity
holders of Metro Bank by the weighted average number of ordinary shares in issue during the period.
Diluted EPS has been calculated by dividing the loss attributable to our ordinary equity holders 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.
As we were loss making in the year ended 31 December 2024, the share options would be antidilutive, as they would
reduce the loss per share. Therefore, all the outstanding options have been disregarded in the calculation of
dilutive EPS for 2024.
2024 2023
Profit/(loss) attributable to ordinary equity holders (£’million) 42.5 29.5
Weighted average number of ordinary shares in issue (thousands)
Basic 672,784 214,297
Adjustment for share awards 2,466 6,459
Diluted 675,250 220,756
Earnings per share (pence)
Basic 6.3 13.8
Diluted 6.3 13.4
In Q4, 2023, shareholders approved a £925 million capital package that included £150 million of new equity made up
of 500,000 shares. The new shares increased the weighted average number of ordinary shares in issue from 214,297
thousand in 2023 to 672,784 thousand in 2024.
18. Non-cash items
2024 2023
£’million £’million
Interest income (935) (856)
Interest expense 558 444
Depreciation and amortisation 77 78
Impairment and write-offs of property, plant, equipment and intangible 44 5
assets
Expected credit loss expense 7 33
Share option charge 2 3
Grant income recognised in the income statement (3) (2)
Amounts provided for (net of amounts released) (8) 16
Haircut on Tier 2 debt - (100)
(Loss)/gain on sale of assets (101) 3
Total adjustments for non-cash items (359) (376)
19. Post balance sheet events
On 26th February 2025, Metro Bank confirmed entering into an agreement to sell a portfolio of approximately £584
million performing unsecured personal loans. The sale of the Portfolio is in line with Metro Bank’s strategy to
reposition its balance sheet and enhance risk-adjusted returns on capital. The transaction is capital accretive
and creates additional lending capacity to enable Metro Bank to continue its asset rotation towards higher
yielding commercial, corporate, SME lending and specialist mortgages.
Reconciliation from statutory to underlying results
Impairment and Cost
write-off of Net C&I Remediation associated Underlying
Year ended 31 Statutory property, plant, Transformation costs Mortgage with basis
December 2024 basis equipment and costs costs Sale capital
£’million intangible £’million £’million £’million £’million raise1 £’million
assets
£’million £’million
Net interest 377.9 – – – – – – 377.9
income
Net fee and
commission 93.2 – – – – – – 93.2
income
Net loss on (101.4) – – – – 101.4 – 0.00
sale of 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 of
PPE and (44.0) 44.0 – – – – – –
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)/profit (212.1) 44.0 – 31.1 21.3 101.6 0.1 (14.0)
before tax
Impairment and
write-off of Holding Capital
Statutory property, Net C&I Transformation Remediation company raise and Underlying
Year ended 31 basis plant, costs costs insertion refinancing basis
December 2023 £’million equipment and costs £’million costs
intangible £’million £’million £’million £’million £’million
assets
£’million
Net interest 411.9 – – – – – – 411.9
income
Net fee and
commission 90.4 – – – – – – 90.4
income
Net gains on 2.7 – – – – – – 2.7
sale of assets
Other income 143.9 – (2.4) – – – (100.0) 41.5
Total income 648.9 – (2.4) – – – (100.0) 546.5
General
operating (502.9) – 2.4 20.2 – 1.8 26.0 (452.5)
expenses
Depreciation
and (77.7) – – – – – – (77.7)
amortisation
Impairment and
write-offs of
PPE and (4.6) 4.6 – – – – – –
intangible
assets
Total
operating (585.2) 4.6 2.4 20.2 – 1.8 26.0 (530.2)
expenses
Expected
credit loss (33.2) – – – – – – (33.2)
expense
Profit/(loss) 30.5 4.6 – 20.2 – 1.8 (74.0) (16.9)
before tax
1. Relates to capital raise in Q4 2023.
Capital information
Key metrics
31 December 31 December
2024 2023
£’million £’million
Available capital
CET1 capital 808 985
Tier 1 capital 808 985
Total capital 958 1,135
Total capital + MREL 1,479 1,655
Risk-weighted assets
Total risk-weighted assets 6,442 7,533
Risk-based capital ratios as % of risk-weighted assets
CET1 ratio 12.5% 13.1%
Tier 1 ratio 12.5% 13.1%
Total capital ratio 14.9% 15.1%
MREL ratio 23.0% 22.0%
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 5.6% 5.3%
Liquidity coverage ratio
Liquidity coverage ratio 337% 332%
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
2024 2023
£’million £’million
Common equity tier 1 capital 808 985
Additional tier 1 capital - –
Tier 1 capital 808 985
CRD IV leverage exposure 14,416 18,420
UK leverage ratio 5.6% 5.3%
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
2024 2023
£’million £’million
Total high-quality liquid assets 6,071 6,656
Total net cash outflow 1,799 2,002
Liquidity coverage ratio 337% 332%
Overview of risk-weighted assets and capital requirements
Pillar 1 capital required
31 December 31 December
31 December
2024 2023
2024
£’million £’million
£’million
Credit risk (excluding counterparty credit risk 5,703 6,804 456
(CCR))
Of which the standardised approach 5,703 6,804 456
CCR 19 26 2
Of which mark to market 19 26 2
Of which CVA 0 0 0
Market risk 0 0 0
Operational risk 720 703 58
Of which basic indicator approach – –
Of which standardised indicator approach 720 703
Amounts below the thresholds for deduction (subject – –
to 250% risk weight)
Total 6,442 7,533 515
Credit risk exposures by exposure class
Our Pillar 1 capital requirement for credit risk is set out in the table below.
31 December 2024 31 December 2023
£’million £’million
Exposure value Capital required Exposure value Capital required
Central governments or central banks 4,521 1 5,997 1
Exposures to multilateral development banks 1,465 – 1,614 –
Institutions 2 0 9 –
Corporates 1,100 78 702 49
Retail 1,048 58 1,639 93
Secured by mortgages on immovable property 6,206 210 9,061 291
Covered bonds 561 4 706 6
Claims on institutions and corporates with a 61 1 133 3
short-term credit assessment
Securitisation position 1,122 10 1,075 10
Exposure at default 304 26 210 17
Collective investment undertakings 115 – 58 –
Items associated with particularly high risk 4 0 12 1
Other exposures 907 68 973 72
Total 17,416 456 22,189 544
Capital resources
The table below summarises the composition of regulatory capital on a proforma basis, including the profit for the
year1.
31 December 31 December
2024 2023
£’million £’million
Share capital and premium 144 144
Retained earnings 978 949
Profit/(loss) for the year1 43 29
Other reserves 18 12
Intangible assets (126) (193)
Other regulatory adjustments (249) 44
CET 1 capital 808 985
Tier 1 capital 808 985
Tier 2 capital 150 150
Total capital resources 958 1,135
MREL eligible debt 521 520
TCR + MREL 1,479 1,655
1. The profit for the year is included to show our capital resources on a proforma basis as at 31 December 2024.
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.
Our capital adequacy was in excess of the minimum required by the regulators at all times.
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Category Code: FR
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