Metro Bank (MTRO) H2 2025 earnings summary

Executive summary

• Achieved record underlying profit of £98 million for 2025, the highest in company history, with all market guidance delivered and costs outperformed.

• Revenue grew 16% year-over-year to £585 million, with net interest income up 22% and cost to income ratio improving to 81%.

• Relationship-led model and strategic partnerships drove automation, scalability, and the lowest cost of deposits among UK High Street banks.

• Commercial and corporate loan originations reached £2 billion, nearly triple from two years ago, with a strong £800 million pipeline for 2026.

• Cost base reduced by 7%, ahead of guidance, resulting in a lower cost-income ratio and improved operational efficiency.

Financial highlights

• Underlying profit before tax reached £98 million, up £112 million from the previous year.

• Revenue increased by £81 million year-over-year to £585 million.

• Net interest margin rose to 2.98% from 1.91% year-over-year; exit NIM at 3.17%, highest in company history.

• Statutory profit after tax increased 64% to £69.7 million; earnings per share at 7.8p.

• Loan to deposit ratio at 66%, liquidity coverage ratio at 306%, and tangible net asset value per share at 1.63.

Outlook and guidance

• RoTE expected to more than double to 13% by Q4 2026, 15% in 2027, and greater than 18% in 2028.

• NIM guidance slightly widened to 3.40%-4% for 2026 and 3.75%-4.50% for 2027, with the lower end reduced by 20-25 basis points due to rate uncertainty.

• Cost-income ratio targeted to fall to 55–50% by 2028; costs for 2026 expected flat versus 2025.

• Treasury maturities and MREL call in 2028 expected to provide significant RoTE uplift.

• Through-the-cycle cost of risk expected between 0.40–0.60%.