Metro Bank posted strong second-half results, driven by steady loan growth, improved net interest margins, and controlled credit costs. The bank's performance reflects resilience in the UK retail banking sector amid macroeconomic headwinds.
- Underlying profit before tax: £184 million, up 12% YoY
- Net interest margin: 3.8%, up 15 bps from H2 2024
- Total loans: £28.9 billion, up 6.2% YoY
- Provision for credit losses: £39 million, down from £52 million
- Cost-to-income ratio: 61.3%, improved by 1.8 ppt
- Full-year dividend: 9.5p per share
Metro Bank delivered consistent financial results in the second half of 2025, with underlying profit before tax rising 12% year-on-year to £184 million. The bank's net interest margin expanded to 3.8%, up 15 basis points from the same period in 2024, supported by disciplined pricing and deposit mix improvements. Total customer loans grew by 6.2% to £28.9 billion, with mortgage lending up 7.4% and personal loans increasing 5.1%. The bank maintained a conservative approach to credit risk, with gross impaired loans decreasing by 3% to £178 million. The provision for credit losses was £39 million, down from £52 million in H2 2024, reflecting improved asset quality. Cost-to-income ratio improved to 61.3%, a 1.8 percentage point reduction, due to efficiency gains and targeted operating expense management. Metro Bank’s retail deposit base grew by 4.8% to £21.6 billion, with digital channel adoption increasing across all customer segments. The bank maintained its dividend policy, announcing a final dividend of 5.2p per share, bringing the full-year payout to 9.5p. The company reaffirmed its medium-term target of achieving a return on equity above 10% by 2027. Market reaction was muted, with LSE:MTB shares closing 0.7% higher following the announcement. The broader UK banking sector, tracked by the ^FTSE index, saw slight gains, while GBP/USD remained flat near $1.2820. Analysts noted the results as a positive sign for mid-tier UK lenders navigating a complex interest rate environment.