Metro Bank kicks off strategic review which could lead to company sale

Metro Bank Holdings PLC on Thursday said it is conducting a strategic review of its options including commencing a formal sale process.

The London-based retail and private bank said it remains highly confident in its standalone growth prospects and ability to deliver its guidance.

However, after making "significant progress", Metro Bank said it is now "well positioned" to consider a broader range of strategic opportunities for its next phase of growth.

Evaluating potential interest in the company through a formal sale process and continuing to execute the standalone plan, will "maximise the value creation opportunities available to shareholders", Metro Bank said.

Shares in the London-based retail bank were up 6.3% to 189.80 pence each in London on Thursday for a market value of £1.28 billion. Earlier in the morning, the stock set a new 52-week high of 194.20p.

Earlier this month, Metro Bank confirmed its full-year guidance as it reported an improved net interest margin in the third quarter and said credit quality remains strong.

Metro Bank reported gross loans and advances to customers rose 4.9% to £9.43 billion in the third quarter of 2026 from £8.99 billion a year earlier, driven by 37% growth in target lending segments to £6.62 billion.

Net loans increased 5.3% to £9.29 billion from £8.82 billion, while customer deposits declined 1.4% to £13.03 billion from £13.21 billion.

Net interest margin expanded by 42 basis points year-on-year to 3.45%, which Metro Bank noted is already within its full-year guidance range of 3.4% to 4.0%.

The lender highlighted a "clear path" for further expansion of NIM and of return on tangible equity across the fourth quarter of 2026 and into 2027, supported by the maturity of fixed-rate treasury assets and continued asset rotation.

Metro Bank at the time also reaffirmed all guidance, including return on tangible equity greater than 13% in the fourth quarter, greater than 15% in 2027, and greater than 18% in 2028.

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