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Metro Bank Holdings PLC on Wednesday reported lower assets and deposits but growth in its ‘key’ lending segments during the third quarter. The London-based high-street bank said total assets at the end of the third quarter fell 22% year-on-year to £16.25 billion from £20.80 billion. Deposits from customers decreased 12% to £13.21 billion from £15.08 billion a year earlier, while net loans stood at £8.82 billion, down 2.7% from £9.06 billion. Metro said lending in its target segments - Corporate, Commercial, SME and Specialist Mortgages - rose 12% quarter-on-quarter and 67% year-on-year to £4.84 billion. Run-off lending fell 9% in the quarter and 35% over the year. The bank cited a ‘strong’ credit-approved pipeline of £750 million in its core segments and said its loan-to-deposit ratio improved to 67%, up from 60% a year earlier. Metro reported an exit net interest margin of 3.03% at the end of September, already within its full-year guidance range of 3.00% to 3.25%, and said its cost of deposits was 95 basis points; the lowest of any UK high street bank, according to the company. Chief Executive Officer Daniel Frumkin said: ‘Our positive momentum has continued in the third quarter, as we delivered strong financial performance and increased lending in our key target areas of Corporate, Commercial and SME and Specialist Mortgages. ‘As well as our successful asset rotation into these sectors, we have the lowest cost of deposits of any UK High Street bank, and our exit net interest margin is already within full-year guidance range.’ He added that Metro Bank was supported by ‘a strong credit approved pipeline and disciplined cost management,’ and reaffirmed all guidance for 2025 and beyond. The bank also said it expects to be reclassified as a ‘transfer firm’ under the Bank of England’s new rules from January 2026, which would remove the need for minimum requirement for own funds and eligible liabilities, known as MREL. Shares in Metro Bank were up 2.4% at 111.60 pence in London on Wednesday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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