Metro Bank (MTRO) Q3 2024 TU earnings summary

Executive summary

• Returned to profitability on an underlying basis in October, with profits aligning to 2025 guidance of mid- to upper single digit RoTE.

• NIM improved to 2.48% in October, up 84bps since H1 2024, meeting 2024 guidance.

• Strategic shift towards higher yielding commercial, corporate, SME, and specialist mortgages continues.

Financial highlights

• Net loans at £9.1bn as of 30 September 2024, down 22% from H1 2024 due to £2.5bn mortgage portfolio disposal.

• Customer deposits at £15.1bn, down £1.4bn from February 2024 peak and 4% from H1 2024.

• Loan to deposit ratio decreased to 60% from 73% in H1 2024 and 80% in Q3 2023.

Outlook and guidance

• All forward guidance from half-year results reconfirmed.

• Positive momentum expected, with robust pipeline in higher yielding lending segments.