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Metro Bank Holdings PLC on Wednesday said it returned to profit in the first half of the year as revenue climbed, after it increased lending to corporate customers. The London-based high-street bank said it swung to a pretax profit of £43.1 million in the six months to the end of June from a loss of £33.5 million a year ago. Total underlying revenue climbed 22% to £286.1 million from £234.0 million, while underlying net interest income jumped 30% to £222.9 million from £171.9 million. The bank said operating costs on an underlying basis were down 7.8% to £234.7 million from £254.6 million. Metro has trimmed its workforce by around 30% and scrapped seven-day-a-week opening hours in its branches. Chief Executive Officer Daniel Frumkin said the company had no further plans for significant cost reductions, PA reported. ‘We don’t have any plans [for] any other further major restructures or any further real cost-cutting & we’ve done all of the heavy lifting,’ he said. It said balances in its target lending segments of corporate, commercial and small to medium sized enterprises grew 78% from a year ago to £4.33 billion from £2.44 billion a year prior. The bank reaffirmed its existing guidance. It expects a mid-to-upper single digit return on tangible equity in 2025, rising to double-digit in 2026 and mid-to-upper teens thereafter. CEO Frumkin said: ‘Metro Bank’s strong performance in the first half of the year reflects the successful execution of our strategy and decisive actions we have taken. We trebled profits, doubled new lending to corporate, commercial and SME customers, meaningfully reduced operating costs and optimised funding to have the lowest cost of deposits of any UK high street bank. ‘Looking ahead, we have a clear path to growth, delivering mid-to-upper teens [return on tangible equity] by 2027, with cost of deposits and operating costs both already below levels needed to meet 2027 targets. We are confident in reconfirming guidance, as the actions we have already taken continue to build momentum to 2027 and beyond.’ Shares in Metro Bank were down 7.7% at 115.60 pence in London on Wednesday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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