Metro Bank Reports Profitable First Quarter in 2025

Metro Bank Holdings PLC has posted a profitable first quarter for 2025. The bank reported a significant rise in underlying profit due to a higher net interest margin (NIM), primarily attributed to ongoing asset rotation and optimized deposits. The first quarter also saw a robust corporate and SME credit pipeline, equating to over 50% of the total lending for 2024.

The bank continues to strategically manage costs in alignment with 2024 measures, while optimising capital following a £250 million AT1 issuance and the sale of a £584 million unsecured personal loan portfolio. CEO Daniel Frumkin emphasized strategic repositioning, asset mix adjustments, and a disciplined approach to deposits as core factors in achieving these results.

Overall assets fell by 3%, while loans and deposits saw declines of 6% and 4% respectively, reflecting a focus on higher-yield lending and deposit strategy refinement. Meanwhile, Metro Bank successfully increased its capital ratios, reinforcing its financial position and growth capacity.