REG-Metro Bank Holdings PLC Metro Bank Holdings PLC: First Quarter 2025 Trading Update

Metro Bank HoldingsAnnouncement

Thu 07:02

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   Metro Bank Holdings PLC (MTRO)
   Metro Bank Holdings PLC: First Quarter 2025 Trading Update

   08-May-2025 / 07:00 GMT/BST

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                                                      Metro Bank Holdings PLC

                                                       Trading Update Q1 2025

                                                                   8 May 2025

    

   Metro Bank Holdings PLC (LSE: MTRO LN) (“Metro Bank”)

    

   Legal Entity Identifier: 984500CDDEAD6C2EDQ64

    

                       First Quarter 2025 Trading Update

    

   Highlights

    

     • Q1 2025 profitable on both an underlying and statutory basis

    

     • Significant increase in Q1 2025 underlying profit versus H2 2024  from
       structurally higher  NIM,  driven  by  continued  asset  rotation  and
       deposit optimisation

    

     • Corporate/commercial/SME credit approved pipeline as at 31 March  2025
       equivalent to >50% of total 2024 lending

    

     • Continued cost  reduction  in  Q1 2025,  in  line  with  expectations,
       reflecting actions taken in 2024

    

     • Capital optimised following the £250 million Additional Tier 1 (AT1)
       issuance and completion of £584 million unsecured personal loan
       portfolio sale

    

     • Metro Bank remains confident in meeting guidance1 given at full year

    

   Daniel Frumkin, Chief Executive Officer at Metro Bank, said:

    

   “During the first quarter of 2025, we have continued to deliver the
   strategic repositioning of Metro Bank’s business, maintaining strong cost
   control while driving higher net interest margin by changing the mix of
   assets and remaining disciplined about deposits.”

    

   “We have seen further growth in our corporate and commercial lending, with
   Metro Bank’s relationship banking and breadth of services creating
   differentiation for us in the market.”

   “Looking ahead, we will continue to play an important role in supporting
   our customers as the UK focuses on delivering economic growth. We remain
   firmly on track to meet our guidance given at full year”.

   Key Financials

    

                        31 March 31 December Change from 31 March Change from

   £ in millions          2025      2024     31 December   2024    31 March
                                                2024                 2024
                                                                   
   Assets                17,074    17,582       (3%)      22,612     (24%)
   Loans                 8,465      9,013       (6%)      11,820     (28%)
   Deposits              13,817    14,458       (4%)      16,210     (15%)
   Loan to deposit        61%        62%      (1 ppts)     73%     (12 ppts)
   ratio

    

   Total net loans as  at 31 March  2025 were £8.5 billion,  down 6% from  31
   December 2024, reflecting the  £584 million performing unsecured  personal
   loan portfolio sale.  The bank continues  to strategically reposition  its
   balance sheet  towards  higher  yielding  corporate,  commercial  and  SME
   lending and specialist mortgages. Metro Bank has a strong and high-quality
   credit approved commercial  pipeline, equivalent  to greater  than 50%  of
   total new lending in 2024, with year-to-date drawdowns already over 40% of
   total new lending in 2024.

    

   Customer deposits reduced  by 4% in  Q1 2025 to  £13.8 billion, driven  by
   maturities of  higher  cost fixed-term  deposits  and continued  focus  on
   reducing excess liquidity and cost of deposits.

    

   The underlying  service-led core  deposit franchise  saw continued  growth
   during the quarter, with c.20k new personal and c.10k new business current
   account openings.

    

   To optimise  the capital  framework and  provide further  flexibility  for
   growth, Metro Bank successfully issued £250 million AT1 securities  during
   the period, resulting in a further 31 December 2024 pro forma  improvement
   in Tier 1 capital ratio from 13.4% (post unsecured personal loan portfolio
   sale) to 17.5%.

    

    1. Our guidance is based on  our current expectations of  forward-looking
       interest rates and macroeconomic conditions. We will monitor and react
       to any changes  in global  economic market conditions  and refine  our
       internal forecasts as this position evolves.

    

   Enquiries

    

   For more information, please contact:

    

   Metro Bank PLC Investor Relations

   Stella Gavaletakis/ Daniel Ainscough

   +44 (0) 20 3402 8900

    1 IR@metrobank.plc.uk

    

   Metro Bank PLC Media Relations

   Victoria Gregory

   +44 (0) 7773 244 608

    2 pressoffice@metrobank.plc.uk

    

   FGS Global

   Chris Sibbald

   +44 (0) 7855 955 531

    3 Metrobank-lon@fgsglobal.com

    

                                      ENDS

    

    

   About Metro Bank

    

   Metro Bank provides corporate, commercial  and SME banking and  specialist
   mortgage lending,  alongside retail  and private  banking services.  Metro
   Bank offers relationship banking through a network of 75 stores in the UK,
   telephone banking from UK-based contact centres and digital banking via an
   award-winning mobile app.

    

   Metro Bank  appeared in  second place  for personal  and business  service
   in-store in  the  Competition  and  Markets  Authority’s  Service  Quality
   Survey, February 2025.

    

   Metro Bank  Holdings PLC  (registered in  England and  Wales with  company
   number 14387040, registered office: One Southampton Row, London, WC1B 5HA)
   is the listed entity and holding company of the Metro Bank group.

    

   Metro Bank  PLC  (registered in  England  and Wales  with  company  number
   6419578, registered  office: One  Southampton Row,  London, WC1B  5HA)  is
   authorised by the  Prudential Regulation  Authority and  regulated by  the
   Financial  Conduct   Authority   and  Prudential   Regulation   Authority.
   ‘Metrobank’ is  a  registered  trademark  of  Metro  Bank  PLC.   Eligible
   deposits are protected by the Financial Services Compensation Scheme.  For
   further information about the Scheme, refer to  4 www.fscs.org.uk.

    

   Metro Bank is an independent UK bank – it is not affiliated with any other
   bank or organisation. Please refer to Metro Bank using the full name.

    

    

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   ISIN:           GB00BMX3W479
   Category Code:  QRF
   TIDM:           MTRO
   LEI Code:       984500CDDEAD6C2EDQ64
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   386898
   EQS News ID:    2132590


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:IR@metrobank.plc.uk
   2. mailto:pressoffice@metrobank.plc.uk
   3. mailto:Metrobank-lon@fgsglobal.com
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=ac50e6f85dfb73f4fd992d1146c5a526&application_id=2132590&site_id=refinitiv~~~456f380e-074c-434c-ab61-d8ca972fa0de&application_name=news


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