First Quarter 2025 Trading Update
Q1 2025 profitable on underlying and statutory basis; NIM improved through asset rotation and deposit optimisation.
- Total assets £17,074m (prior £17,582m)
- Total loans £8,465m (prior £9,013m)
- Customer deposits £13,817m (prior £14,458m)
- Loan to deposit ratio 61% (prior 62%)
- Tier 1 capital ratio (pro forma) 17.5% (prior 13.4%)
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08-May-2025 / 07:00 GMT/BST
Metro Bank Holdings PLC
Trading Update Q1 2025
Metro Bank Holdings PLC (LSE: MTRO LN) (“Metro Bank”)
First Quarter 2025 Trading Update
Highlights
Q1 2025 profitable on both an underlying and statutory basis
Significant increase in Q1 2025 underlying profit versus H2 2024 from structurally higher NIM, driven by continued asset rotation and deposit optimisation
Corporate/commercial/SME credit approved pipeline as at 31 March 2025 equivalent to >50% of total 2024 lending
Continued cost reduction in Q1 2025, in line with expectations, reflecting actions taken in 2024
Capital optimised following the £250 million Additional Tier 1 (AT1) issuance and completion of £584 million unsecured personal loan portfolio sale
Metro Bank remains confident in meeting guidance1 given at full year
Daniel Frumkin, Chief Executive Officer at Metro Bank, said:
“During the first quarter of 2025, we have continued to deliver the strategic repositioning of Metro Bank’s business, maintaining strong cost control while driving higher net interest margin by changing the mix of assets and remaining disciplined about deposits.”
“We have seen further growth in our corporate and commercial lending, with Metro Bank’s relationship banking and breadth of services creating differentiation for us in the market.”
“Looking ahead, we will continue to play an important role in supporting our customers as the UK focuses on delivering economic growth. We remain firmly on track to meet our guidance given at full year”.
Key Financials
| £ in millions | 31 March 2025 | 31 December 2024 | Change from 31 December 2024 | 31 March 2024 | Change from 31 March 2024 |
|---|---|---|---|---|---|
| Assets | 17,074 | 17,582 | (3%) | 22,612 | (24%) |
| Loans | 8,465 | 9,013 | (6%) | 11,820 | (28%) |
| Deposits | 13,817 | 14,458 | (4%) | 16,210 | (15%) |
| Loan to deposit ratio | 61% | 62% | (1 ppts) | 73% | (12 ppts) |
Total net loans as at 31 March 2025 were £8.5 billion, down 6% from 31 December 2024, reflecting the £584 million performing unsecured personal loan portfolio sale. The bank continues to strategically reposition its balance sheet towards higher yielding corporate, commercial and SME lending and specialist mortgages. Metro Bank has a strong and high-quality credit approved commercial pipeline, equivalent to greater than 50% of total new lending in 2024, with year-to-date drawdowns already over 40% of total new lending in 2024.
Customer deposits reduced by 4% in Q1 2025 to £13.8 billion, driven by maturities of higher cost fixed-term deposits and continued focus on reducing excess liquidity and cost of deposits.
The underlying service-led core deposit franchise saw continued growth during the quarter, with c.20k new personal and c.10k new business current account openings.
To optimise the capital framework and provide further flexibility for growth, Metro Bank successfully issued £250 million AT1 securities during the period, resulting in a further 31 December 2024 pro forma improvement in Tier 1 capital ratio from 13.4% (post unsecured personal loan portfolio sale) to 17.5%.
Our guidance is based on our current expectations of forward-looking interest rates and macroeconomic conditions. We will monitor and react to any changes in global economic market conditions and refine our internal forecasts as this position evolves.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.