Metro Bank targets 18% RoTE by 2028 as it swings to profit

(Sharecast News) - Shares in Metro Bank surged on Wednesday as the UK lender said its return on tangible equity would more than double to 13% in the next six months as it swung to a record profit in 2025.

The bank said it was aiming for a RoTE of greater than 15% in 2027 and at least 18% the year after. The news sent Metro stock up almost 8% in early London trade.

Underlying profit before tax of £98m for 2025 compared with a £14m loss a year earlier, driven by continued improvements in net interest income - the difference between earnings on loans and interest on deposits - and further cost reductions, Metro said on Wednesday.

Net interest margin was 2.98%, up from 2024's 1.91%, with an exit NIM of 3.17%, in line with guidance and higher than the 2.65% reported a year earlier.

"Structural improvements to net interest margin reflect lower cost of deposits and increased asset yields," Metro said.

"We continue our strategic shift to corporate, commercial, and SME lending, and specialist mortgages at pace. We delivered record growth in gross new lending in corporate, commercial and SME of £2bn in 2025, almost twice the lending originated in 2024. Alongside this, we built a credit approved pipeline for corporate, commercial and SME of £800m."

Reporting by Frank Prenesti for Sharecast.com