Metro Bank (LSE:MTRO) has reported the highest half-year profit in its history, with underlying profit before tax rising 34% year-on-year to £61 million for the first six months of 2026. The lender also recorded a 43% increase in core target lending, which reached £6.2 billion, while its net interest margin continued to improve, ending the period at 3.25%.
The bank retained the lowest cost of deposits among its UK high street banking peers and reported further improvements in asset quality, supported by lower levels of arrears and non-performing loans. Management also reaffirmed its return-on-tangible-equity targets through 2028, highlighting continued confidence in its strategy to expand its presence in the corporate, commercial and specialist mortgage markets. Although customer deposits edged lower during the period and capital and liquidity ratios declined slightly, the bank said it remains well positioned to deliver sustainable growth.
Metro Bank’s outlook is tempered by relatively weak recent cash flow generation and an elevated level of leverage, despite stronger profitability during 2025. Technical indicators remain broadly supportive, although they suggest the shares may be trading in overbought territory. From a valuation perspective, the stock continues to benefit from a comparatively low price-to-earnings ratio.
More about Metro Bank
Metro Bank Holdings PLC is a UK-based retail and commercial bank that provides banking services to individuals, small and medium-sized businesses, and larger corporate customers. Its product offering includes current and savings accounts, business lending and specialist mortgage solutions.
The bank is focused on expanding its higher-margin corporate, commercial and specialist mortgage businesses while continuing to reduce exposure to its legacy prime residential mortgage portfolio and government-backed lending programmes. This strategy is intended to improve profitability and support long-term growth across its core markets.
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