Metro Bank (MTRO) Q1 2025 TU earnings summary

Executive summary

• Achieved profitability on both underlying and statutory basis in Q1 2025, with significant profit increase versus H2 2024 due to higher net interest margin from asset rotation and deposit optimisation.

• Strategic repositioning continues, focusing on higher-yielding corporate, commercial, SME lending, and specialist mortgages.

• Maintained strong cost control and continued cost reduction in Q1 2025, in line with expectations.

Financial highlights

• Total assets at £17.1 billion as of 31 March 2025, down 3% from 31 December 2024 and 24% year-over-year.

• Net loans at £8.5 billion, down 6% sequentially and 28% year-over-year, reflecting a £584 million unsecured personal loan portfolio sale.

• Customer deposits decreased 4% in Q1 2025 to £13.8 billion, mainly due to maturities of higher-cost fixed-term deposits and focus on reducing excess liquidity.

• Loan to deposit ratio improved to 61% from 62% at year-end and 73% a year ago.

Outlook and guidance

• Confident in meeting full-year guidance, based on current expectations of interest rates and macroeconomic conditions.

• Will monitor and adjust forecasts as global economic conditions evolve.