Metro Bank Holdings PLC (LSE:MTRO) reported a 37% year-on-year increase in lending across its target segments during the third quarter of 2026, while its exit net interest margin (NIM) reached 3.45%, up 42 basis points from a year earlier.
The UK lender reaffirmed its financial guidance, including return on tangible equity (RoTE) targets of more than 13% in the fourth quarter of 2026, above 15% in 2027 and over 18% in 2028.
Lending Growth and Balance Sheet Performance
Gross lending across Metro Bank’s corporate, commercial, SME and specialist mortgage segments increased to £6.62 billion, representing growth of 37% year-on-year and 7% from the previous quarter.
The bank’s run-off loan portfolio declined 32% year-on-year to £2.81 billion as it continued reallocating capital and liquidity towards its target lending markets.
Total gross loans increased 5% to £9.43 billion, while net loans and advances reached £9.29 billion, compared with £8.82 billion a year earlier.
Total assets stood at £16.67 billion, up 3% annually but down 2% from the first half of 2026.
Deposits and Credit Quality
Customer deposits totalled £13.03 billion at the end of September, down 1% year-on-year and from the first half.
Metro Bank attributed the reduction to its management of higher-cost non-relationship deposits, partly offset by growth in retail and business current account balances.
The net loan-to-deposit ratio increased to 71%, compared with 67% a year earlier.
The bank reported low arrears across its lending portfolio, which remains predominantly secured against property. Impairment allowances declined to £131 million from £171 million in the corresponding period of 2025.
Net Interest Margin and Financial Outlook
Metro Bank reported a structural net interest margin of 3.45%, within its full-year guidance range.
Management expects further margin expansion during the fourth quarter and into 2027, supported by the maturity of fixed-rate treasury assets and continued changes to its lending portfolio.
The bank maintained its RoTE targets of more than 13% for the fourth quarter of 2026, more than 15% in 2027 and more than 18% in 2028.
More About Metro Bank
Metro Bank Holdings PLC is a UK banking group providing personal and business banking services, including current accounts, deposits, commercial lending, SME finance and specialist mortgages.
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