Metro Bank posts record half‑year profit as lending surges

(Sharecast News) - Metro Bank reported its most profitable half on record on Tuesday, with underlying profit before tax rising 34% year‑on‑year to £61m, driven by strong lending growth and continued improvement in returns.



The bank said core lending expanded 43% compared with the first half of 2025, reflecting gains across corporate, commercial, SME and specialist mortgage segments. Total net loans reached £9.1bn, while the loan‑to‑deposit ratio increased to 69%.

Net interest margin strengthened to 3.18%, up from 2.87% a year earlier, with exit NIM at 3.25%. Metro Bank said the shift towards higher‑yielding assets and the repricing of treasury holdings would support further margin expansion through the second half.

Underlying revenue rose 5% to £301m, while underlying operating costs fell 2% to £231m as the group continued to manage expenses tightly. Statutory profit after tax increased to £49m, up from £30.4m in the prior year.

The bank said its loan book was "appropriately provisioned", with an expected credit loss charge of £10m for the period.

Looking ahead, Metro Bank reaffirmed all guidance for 2026 and beyond, including a return on tangible equity of 13%+ in the fourth quarter, 15%+ in 2027 and 18%+ in 2028. Exit NIM is expected to reach 3.40%-4.00% by year‑end, rising further in 2027.

Reporting by Frank Prenesti for Sharecast.com