Metro Bank PLC

Metro Bank reported a record underlying profit of £61 million for the first half of 2026, a 34% increase from a year earlier, driven by higher-margin lending, treasury asset repricing and cost discipline. Return on average equity rose 270 basis points to 7.5%, while the exit net interest margin reached 325 basis points, the highest in the bank's history. The cost-to-income ratio improved to 77% from 82%. Management reaffirmed targets including an exit NIM above 340 basis points in 2026 and return on tangible equity above 13% in the fourth quarter, more than 15% in 2027 and more than 18% in 2028. Commercial lending accounted for 44% of the total loan book, up from 35% a year earlier, with £1 billion originated in the half and a record credit-approved pipeline of £1 billion. The bank expects £1.2 billion to £1.3 billion of new commercial and corporate lending in the second half. Treasury asset repricing is set to provide a £24 million revenue uplift as £833 million of maturing assets roll onto a rate closer to 3.75%. Underlying revenue increased 5% to £301 million, while costs fell 2% to £231 million, and full-year 2026 costs are expected to be broadly flat compared with 2025.