Metro Bank swings back to profit as cuts more costs than expected
Metro Bank Holdings PLC on Wednesday announced a return to annual profit as it hailed a ‘clear strategy and resilient business model that will support profitable growth’.
The London-based high-street bank said pretax profit was £87.2 million in 2025, compared to a loss of £212.1 million in 2024.
Net interest income rose 22% to £460.3 million from £377.9 million. That is despite interest income falling 22% to £725.4 million from £935.4 million, as interest expenses were slashed by 52% to £265.1 million from £557.5 million.
Underlying profit was £98.1 million in 2025, the highest in the company’s 15-year history, compared to a loss of £14.0 million in 2024.
Notably, total operating expenses came down 3.6% to £491.8 million from £610.3 million.
Metro Bank added that underlying operating costs reduced by 7.3% to £473 million in 2025 from £510 million in 2024, ahead of guidance of 4% to 5%.
Pertinently, net gains on sale of assets were £5.2 million in 2025, compared to a net loss of £101.4 million in 2024.
The common equity tier 1 capital ratio was 12.5% as at December 31, the same as a year prior.
Return on tangible equity, or RoTE, was 6.4% in 2025. The company expects RoTE to treble to greater than 18% in 2028, the firm said.
Chief Executive Officer Daniel Frumkin said: ‘Metro Bank stands out for our focus on relationship banking, our full service-offer to small & medium enterprises 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.’
Metro Bank shares were 0.1% higher at 114.27 pence each on Wednesday morning in London.
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