Metro Bank Holdings PLC (LSE: MTRO LN) (“Metro Bank”)
Results for the year ended 31 December 2025
A year of strong growth and operational delivery
- Underlying profit before tax of £98 million, the highest in Metro Bank’s history
- 22% increase in Net Interest Income driving 16% increase in underlying Revenue
- Generated highest NII and Revenue in history of Metro Bank
- Continued NIM expansion, with exit NIM at December 2025 of 3.17%, in line with guidance
- 67% record growth in new corporate, commercial and SME lending as Metro Bank wins market share
- Beat cost guidance (7% reduction versus 4-5% guidance), and delivered on all other guidance
- Return on Tangible Equity1 of 6.4% continues to increase in line with guidance
- Opened new stores in Chester, Salford and Gateshead, new leases signed in Newcastle and Leeds
- Reclassified as a Transfer firm under MREL regime, releasing significant capacity for growth
- 2028 guidance to deliver greater than 18% RoTE, almost trebling 2025 RoTE, firmly positioning Metro Bank as one of the UK market leaders
Daniel Frumkin, Chief Executive Officer at Metro Bank, said:
“2025 was a year of strong growth and successful delivery for Metro Bank. Through focused execution of our strategy and pivot to higher margin business, we have boosted underlying profits to £98 million, the highest in our 15-year history, whilst reducing operating costs ahead of target. Metro Bank expects to more than double returns in 6 months and nearly treble them in 18 months through the ongoing execution of our clear strategy.
Metro Bank stands out for our focus on relationship banking, our full service-offer to SMEs and store presence. We are capturing market share in our target segments and have a deep pipeline of attractive lending opportunities. We lent a record £2 billion to companies up and down the UK, supporting growth and creating jobs.
Looking forward, we have a clear strategy and resilient business model that will support profitable growth against a changing market backdrop. Our revised guidance shows we expect to more than double RoTE throughout the fourth quarter of this year and nearly treble it to greater than 18% for 2028. This will see us delivering one of the highest returns of any UK High Street bank.”
- Statutory profit after tax attributable to shareholders as a percentage of average tangible equity (equity excluding other equity instruments, intangible assets and deferred tax assets)
Key Financials
|
£ in millions |
FY 2025 |
FY 2024 |
Change from FY 2024 |
H1 2025 |
Change from H1 2025 |
|
|
|
|
|
|
|
|
Assets |
£16,475 |
£17,582 |
(6%) |
£16,428 |
0% |
|
Loans |
£8,823 |
£9,013 |
(2%) |
£8,715 |
1% |
|
Deposits |
£13,445 |
£14,458 |
(7%) |
£13,363 |
1% |
|
Loan to deposit ratio |
66% |
62% |
4pp |
65% |
1pp |
|
|
|
|
|
|
|
|
CET1 capital ratio |
12.5% |
12.5% |
0bps |
12.8% |
(30bps) |
|
Total capital ratio (TCR) |
18.4% |
14.9% |
350bps |
18.9% |
(50bps) |
|
Total capital plus MREL ratio |
26.1% |
23.0% |
310bps |
27.0% |
(90bps) |
|
Liquidity coverage ratio |
306% |
337% |
(31pp) |
315% |
(9pp) |
|
£ in millions |
FY 2025 |
FY 2024 |
Change from FY 2024 |
H2 2025 |
H1 2025 |
Change from H1 2025 |
|
|
|
|
|
|
|
|
|
Total underlying revenue2 |
£585.1 |
£503.5 |
16% |
£299.0 |
£286.1 |
5% |
|
Underlying profit/(loss) before tax3 |
£98.1 |
(£14.0) |
>100% |
£53.0 |
£45.1 |
17% |
|
Statutory profit/(loss) before tax |
£87.2 |
(£212.1) |
>100% |
£44.1 |
£43.1 |
2% |
|
Statutory profit after tax4 |
£69.7 |
£42.5 |
64% |
£39.3 |
£30.4 |
29% |
|
Net interest margin |
2.98% |
1.91% |
107bps |
3.10% |
2.87% |
23bps |
|
Lending yield |
5.69% |
5.33% |
36bps |
5.71% |
5.67% |
4bps |
|
Cost of deposits |
1.06% |
1.95% |
(89bps) |
0.96% |
1.16% |
(20bps) |
|
Cost of risk |
0.16% |
0.06% |
10bps |
0.18% |
0.14% |
4bps |
|
Earnings per share |
7.8p |
6.3p |
1.5p |
3.3p |
4.5p |
(1.2p) |
|
Book value per share |
£2.20 |
£1.76 |
£0.44 |
£2.20 |
£2.17 |
£0.03 |
|
Tangible net asset value per share |
£1.63 |
£1.57 |
£0.06 |
£1.63 |
£1.61 |
£0.02 |
- Underlying revenue excludes grant income recognised relating to the Capability & Innovation fund and net profit/(loss) on portfolio sales
- Underlying profit/(loss) before tax is an alternative performance measure and excludes impairment and write-off of property, plant & equipment (PPE) and intangible assets, transformation costs, remediation costs, net profit/(loss) on portfolio sales and costs associated with capital raise
- 2024 profit after tax reflects recognition of Deferred Tax Asset in the period
Investor presentation
A presentation for investors and analysts will be held at 9AM (UK time) on 4 March 2026. The presentation will be webcast on:
https://webcast.openbriefing.com/metrobank-fy25/
For those wishing to dial-in:
From the UK dial: +44 808 189 0158
From the US dial: +1 855 979 6654
Access code: 284804
Other global dial-in numbers: https://www.netroadshow.com/events/global-numbers?confId=67110
Financial performance for the year ended 31 December 2025
Deposits
|
£ in millions |
FY 2025 |
FY 2024 |
Change from FY 2024 |
H1 2025 |
Change from H1 2025 |
|
|
|
|
|
|
|
|
Demand: current accounts |
£5,862 |
£5,791 |
1% |
£5,682 |
3% |
|
Demand: savings accounts |
£6,901 |
£7,534 |
(8%) |
£6,991 |
(1%) |
|
Fixed term: savings accounts |
£682 |
£1,133 |
(40%) |
£690 |
(1%) |
|
Deposits from customers |
£13,445 |
£14,458 |
(7%) |
£13,363 |
1% |
|
|
|
|
|
|
|
|
Deposits from customers includes: |
|||||
|
Retail customers (excluding retail partnerships) |
£4,765 |
£5,968 |
(20%) |
£5,000 |
(5%) |
|
SMEs5 |
£4,734 |
£4,442 |
7% |
£4,492 |
5% |
|
|
£9,499 |
£10,410 |
(9%) |
£9,492 |
0% |
|
Retail partnerships |
£1,832 |
£1,785 |
3% |
£1,913 |
(4%) |
|
Commercial customers (excluding SMEs5) |
£2,114 |
£2,263 |
(7%) |
£1,958 |
8% |
|
|
£3,946 |
£4,048 |
(3%) |
£3,871 |
2% |
|
5. 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.
|
|||||
|
· Underlying momentum in the franchise remains strong, with over 32,000 new business current accounts and over 77,000 new personal current accounts opened in the year.
· Excess liquidity has been successfully managed down, with high-cost fixed term deposits now comprising just 5% of the book. Total customer deposits ended FY 2025 at £13.4 billion (FY 2024: £14.5 billion). The core customer deposit base continues to be predominantly Retail, with growth in SMEs in line with the Group’s strategy. |
|||||
|
· Cost of deposits for FY 2025 was 1.06% (FY 2024: 1.95%), with an exit cost of deposits at December 2025 of 0.94% - the lowest of any UK High Street bank. |
|||||
|
· Stores remain a key element to the Group’s service offering and strategy, as an enabler of our relationship-based approach. Metro Bank opened three new stores in 2025, in line with our plan - Chester, Salford and Gateshead, with new leases signed in Newcastle and Leeds. All locations were selected to support our growing corporate, commercial and SME banking offer and local communities. |
|||||
Loans
|
£ in millions |
FY 2025 |
FY 2024 |
Change from FY 2024 |
H1 2025 |
Change from H1 2025 |
|
|
|
|
|
|
|
|
Gross loans and advances to customers |
£8,993 |
£9,204 |
(2%) |
£8,882 |
1% |
|
Less: allowance for impairment |
(£170) |
(£191) |
(11%) |
(£167) |
2% |
|
Net loans and advances to customers |
£8,823 |
£9,013 |
(2%) |
£8,715 |
1% |
|
|
|
|
|
|
|
|
Gross loans and advances to customers consists of: |
|
|
|
|
|
|
Commercial lending6 |
£3,570 |
£2,661 |
34% |
£3,083 |
16% |
|
Specialist Mortgages lending |
£1,657 |
£700 |
137% |
£1,247 |
33% |
|
Target segments |
£5,227 |
£3,361 |
56% |
£4,330 |
21% |
|
Government-backed lending7 |
£369 |
£653 |
(43%) |
£514 |
(28%) |
|
Consumer lending |
£114 |
£745 |
(85%) |
£133 |
(14%) |
|
Prime Mortgages lending |
£3,283 |
£4,445 |
(26%) |
£3,905 |
(16%) |
|
Total run-off books |
£3,766 |
£5,843 |
(36%) |
£4,552 |
(17%) |
|
6. Includes corporate, commercial, SME and CLBILS. 7. BBLS, CBILS and RLS.
|
|||||
|
· Balances in the Group’s target lending segments of corporate, commercial and SME, and specialist mortgages grew by 56% year-on-year, to £5.2 billion. Together with legacy books in run-off, which at FY 2025 totalled £3.8 billion, total gross loans at FY 2025 were £9.0 billion. Total net loans at FY 2025 were £8.8 billion.
· Loan to deposit ratio at FY 2025 was 66%, providing capacity for growth.
· Commercial lending (excluding BBLS, CBILS and RLS) increased by 34% at FY 2025 to £3.6 billion (FY 2024: £2.7 billion) following £2 billion of new gross lending in FY 2025 - a Metro Bank record. Growth in new corporate, commercial and SME lending continues to be offset by attrition, particularly in commercial real estate and portfolio buy-to-let. The DTV of the portfolio at FY 2025 was 67% (FY 2024: 56%) and the portfolio has a coverage ratio of 2.07% (FY 2024: 1.98%).
· Specialist Mortgages increased by 137% year-on-year to £1.7 billion (FY 2024: £0.7 billion). Together with the Prime Mortgage book in run-off, total retail mortgages were £4.9 billion at FY 2025 and remain the largest component of the lending book at 55% (FY 2024: 56%). The Debt to Value (DTV) of the portfolio at FY 2025 was 60% (FY 2024: 59%). Metro Bank’s operating model is tailored to more complex underwriting which enables the Group to meet the needs of more customers and scale underserved markets whilst offering improved risk-adjusted returns.
· Cost of risk for FY 2025 remained low, at 0.16% (FY 2024: 0.06%). The credit quality of new lending continues to be strong and the Group retains its prudent approach to provisioning.
· Overall arrears rates have improved and non-performing loans have reduced. Arrears levels have decreased to 4.7% at FY 2025 (FY 2024: 5.6%) and non-performing loans have reduced to 5.14% at FY 2025 (FY 2024: 5.48%).
· The loan portfolio remains appropriately provisioned. The ECL provision at FY 2025 was £170 million with a coverage ratio of 1.89%. |
|||||
Profit and Loss Account
|
· Underlying profit before tax of £98 million for FY 2025, the highest in Metro Bank’s history, £112 million higher than FY 2024, driven by continued improvements in net interest income and further cost reductions (FY 2024: underlying loss of £14 million).
· Net interest margin for FY 2025 was 2.98% (FY 2024:1.91%), with an exit net interest margin of 3.17%, in line with guidance (FY 2024 Exit NIM: 2.65%). Structural improvements to net interest margin reflect lower cost of deposits and increased asset yields.
· Underlying net interest income increased by 22% year-on-year to £460 million (FY 2024: £378 million), reflecting the continued transition towards higher yielding assets and a reduction in cost of deposits.
· Underlying net fee and other income remained flat year-on-year at £125 million (FY 2024: £126 million).
· Underlying operating costs reduced 7% year-on-year, to £473 million- ahead of guidance (FY 2024: £510 million).
· Expected credit loss expense was £14 million for FY 2025 (FY 2024: £7 million) reflecting a continued benign credit environment.
· Statutory profit after tax for FY 2025 was £69.7 million (FY 2024: £42.5 million, following £255 million Deferred Tax Asset recognition).
|
Capital, Funding and Liquidity
|
|
|
At 31 December 2025 |
From 1 January 2026 |
||
|
|
Position FY 20258 |
Minimum requirement including buffers9 |
Minimum requirement excluding buffers9 |
Minimum requirement including buffers9 |
Minimum requirement excluding buffers9 |
|
Common Equity Tier 1 (CET1) |
12.5% |
9.7% |
5.2% |
9.7% |
5.2% |
|
Tier 1 |
16.1% |
11.4% |
6.9% |
11.4% |
6.9% |
|
Total Capital |
18.4% |
13.7% |
9.2% |
13.7% |
9.2% |
|
Total Capital plus MREL |
26.1% |
22.9% |
18.4% |
13.7% |
9.2% |
|
Risk Weighted Assets (£ million) |
6,711 |
- |
- |
- |
- |
|
8. Capital figures as at 31 December 2025 are presented on a proforma basis, including our profit for the year. The profit will only be eligible to be included in our capital resources following the completion of our audit and publication of our Annual Report and Accounts 9. CRD IV buffers
|
|||||
|
· Capital position is well optimised for growth following the £250 million AT1 securities issuance and completion of £584 million unsecured personal loan portfolio sale in 2025.
· Effective 1 January 2026, the Group was reclassified as a Transfer firm under the MREL regime, with MREL set equal to minimum capital requirements. The Group continues to review its liability structure on an economic basis in the context of its ongoing regulatory and liquidity needs.
· Metro Bank’s Total Capital plus MREL ratio at FY 2025 was 26.1%, a 310bps improvement year-on-year (FY 2024: 23.0%), and 320bps above regulatory minimum requirements as at FY 2025 (including buffers).
· The Bank remains focused on optimising risk-adjusted returns on regulatory capital.
· Total RWAs increased year-on-year to £6.7 billion (FY 2024: £6.4 billion), reflecting continued asset rotation into higher-density corporate, commercial and SME lending. RWA density at FY 2025 was 41% (FY 2024: 37%).
· Strong liquidity and funding position maintained with all customer loans fully funded by customer deposits. Loan to deposit ratio at FY 2025 was 66%.
· Liquidity Coverage Ratio (LCR) at FY 2025 was 306% (FY 2024: 337%), with cash balances in excess of £2 billion.
· Net Stable Funding Ratio (NSFR) at FY 2025 was 161% (FY 2024: 169%).
· The Treasury portfolio of £6.3 billion includes £4.2 billion of investment securities, of which 75% are rated AAA and 25% are rated AA. Of the total investment securities, 95% is held at amortised cost and 5% is held at fair value through other comprehensive income.
· Over the next 2 years approximately £1.5 billion of fixed rate treasury assets will mature at an average blended yield of just over 1%. These will be replaced by asset with yields in line with or greater than the prevailing base rate.
|
|||||
Guidance
|
|
|
|
||
|
RoTE |
· RoTE to be 13% or greater in Q4 2026, 15% or greater for 2027, and 18% or greater for 2028 |
|||
|
NIM |
· Exit NIMs to be between 3.40-4.00% for 2026 and 3.75%-4.50% for 2027 |
|||
|
Costs |
· Cost income ratio to be between 75-70% for 2026, 65-65% for 2027, and 55-50% for 2028 · Costs for 2026 flat versus 2025 |
|||
Metro Bank Holdings PLC
Summary Balance Sheet and Profit & Loss Account
(Unaudited)
|
Balance Sheet £ in millions |
YoY change |
FY 2025 |
H1 2025 |
FY 2024 |
|
|
|
|
||
|
Assets |
|
|
|
|
|
Loans and advances to customers |
(2%) |
£8,823 |
£8,715 |
£9,013 |
|
Treasury assets10 |
(13%) |
£6,345 |
£6,386 |
£7,301 |
|
Other assets11 |
3% |
£1,307 |
£1,327 |
£1,268 |
|
Total assets |
(6%) |
£16,475 |
£16,428 |
£17,582 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits from customers |
(7%) |
£13,445 |
£13,363 |
£14,458 |
|
Deposits from central banks |
- |
£400 |
£400 |
£400 |
|
Debt securities |
1% |
£684 |
£685 |
£675 |
|
Other liabilities |
(47%) |
£462 |
£522 |
£866 |
|
Total liabilities |
(9%) |
£14,991 |
£14,970 |
£16,399 |
|
Total equity |
25% |
£1,484 |
£1,458 |
£1,183 |
|
Total equity and liabilities |
(6%) |
£16,475 |
£16,428 |
£17,582 |
- Comprises investment securities and cash & balances with the Bank of England.
- Comprises property, plant & equipment, intangible assets and other assets.
|
|
|
||||
|
Profit & Loss Account £ in millions |
YoY change |
FY 2025 |
FY 2024 |
||
|
|
|
|
|||
|
|
|
|
|
||
|
Underlying net interest income |
22% |
£460.3 |
£377.9 |
||
|
Underlying net fee and other income |
(1%) |
£124.8 |
£125.6 |
||
|
Underlying net gain on sale of assets |
|
£0.0 |
£0.0 |
||
|
Total underlying revenue |
16% |
£585.1 |
£503.5 |
||
|
|
|
|
|||
|
Underlying operating costs |
(7%) |
(£472.7) |
(£510.4) |
||
|
Expected credit loss expense |
101% |
(£14.3) |
(£7.1) |
||
|
|
|
|
|||
|
Underlying profit/(loss) before tax |
>100% |
£98.1 |
(£14.0) |
||
|
|
|
|
|||
|
Impairment and write-off of property plant & equipment and intangible assets |
|
(£0.7) |
(£44.0) |
||
|
Transformation costs |
|
(£14.4) |
(£31.1) |
||
|
Remediation costs |
|
(£1.2) |
(£21.3) |
||
|
Portfolio sales |
|
£5.4 |
(£101.6) |
||
|
Cost associated with capital raise |
|
- |
(£0.1) |
||
|
Statutory profit/(loss) before tax |
>100% |
£87.2 |
(£212.1) |
||
|
|
|
|
|
||
|
Statutory taxation |
>(100)% |
(£17.5) |
£254.6 |
||
|
|
|
|
|
||
|
Statutory profit after tax |
64% |
£69.7 |
£42.5 |
||
|
|
|
|
|
||
|
|
|
||||
|
Key metrics |
FY 2025 |
FY 2024 |
|
|
|
|
|
Earnings per share |
7.8p |
6.3p |
|
Net interest margin (NIM) |
2.98% |
1.91% |
|
Lending yield |
5.69% |
5.33% |
|
Cost of deposits |
1.06% |
1.95% |
|
Cost of risk |
0.16% |
0.06% |
|
Arrears rate |
4.7% |
5.6% |
|
Underlying cost: income ratio |
81% |
101% |
|
Book value per share |
£2.20 |
£1.76 |
|
Tangible net asset value per share |
£1.63 |
£1.57 |
|
Risk weighted assets (RWAs) |
£6,711 |
£6,442 |
|
Risk weight density (RWAs / total assets) |
41% |
37% |
|
Loan to deposit ratio |
66% |
62% |
|
|
Half year ended |
|
||||
|
Profit & Loss Account |
HoH change |
31 Dec 2025 |
30 Jun 2025 |
31 Dec 2024 |
||
|
|
£'million |
£'million |
£'million |
|||
|
|
|
|
|
|
||
|
Underlying net interest income |
7% |
£237.4 |
£222.9 |
£206.0 |
||
|
Underlying net fee and other income |
(3%) |
£61.4 |
£63.4 |
£63.4 |
||
|
Underlying net gains on sale of assets |
(183%) |
£0.2 |
(£0.2) |
£0.1 |
||
|
Total underlying revenue |
5% |
£299.0 |
£286.1 |
£269.5 |
||
|
|
|
|
|
|||
|
Underlying operating costs |
1% |
(£238.0) |
(£234.7) |
(£255.8) |
||
|
Expected credit loss expense |
22% |
(£8.0) |
(£6.3) |
(£0.9) |
||
|
|
|
|
|
|||
|
Underlying profit before tax |
18% |
£53.0 |
£45.1 |
£12.8 |
||
|
|
|
|
|
|||
|
Impairment and write-off of property plant & equipment and intangible assets |
|
(£0.6) |
(£0.1) |
(£43.7) |
||
|
Transformation costs |
|
(£6.7) |
(£7.8) |
(£26.6) |
||
|
Remediation costs |
|
(£1.6) |
£0.4 |
(£19.5) |
||
|
Portfolio sales |
|
- |
£5.5 |
(£101.6) |
||
|
Statutory profit/(loss) before tax |
2% |
£44.1 |
£43.1 |
(£178.6) |
||
|
|
|
|
|
|
||
|
Statutory taxation |
(62%) |
(£4.8) |
(£12.7) |
£254.2 |
||
|
|
|
|
|
|
||
|
Statutory profit after tax |
29% |
£39.3 |
£30.4 |
£75.6 |
||
|
Key metrics |
H2 2025 |
H1 2025 |
H2 2024 |
|
|
|
|
|
|
Earnings per share |
3.3p |
4.5p |
1.9p |
|
Net interest margin (NIM) |
3.10% |
2.87% |
2.22% |
|
Lending yield |
5.71% |
5.67% |
5.48% |
|
Cost of deposits |
0.96% |
1.16% |
1.72% |
|
Cost of risk |
0.18% |
0.14% |
0.01% |
|
Arrears rate |
4.7% |
4.9% |
5.6% |
|
Underlying cost: income ratio |
80% |
82% |
95% |
|
Book value per share |
£2.20 |
£2.17 |
£1.76 |
|
Tangible net asset value per share |
£1.63 |
£1.61 |
£1.57 |
|
Risk weighted assets (RWAs) |
£6,711m |
£6,437m |
£6,442m |
|
Risk weight density (RWAs / total assets) |
41% |
39% |
37% |
|
Loan to deposit ratio |
66% |
65% |
62% |