Metro Bank’s Transformation Success: Record Lending and Profitable Growth in 2025

9 September 2025 Business Development

Strong Performance and Strategic Progress

Metro Bank has achieved remarkable results in the first half of 2025, with record-breaking performance including £1 billion in new corporate, commercial, and SME lending – double the amount from the previous year. The bank has successfully tripled its profits and achieved the lowest cost of deposits among UK high street banks. This milestone coincides with the bank’s 15-year anniversary, highlighting its commitment to relationship-led banking and specialist lending expertise.

Strategic Transformation and Future Outlook

The bank’s transformation strategy has been particularly successful, with CEO Daniel Frumkin noting substantial progress that has positioned the bank ahead of guidance and maintaining profitability. The strategy has focused on higher margin business activities, including corporate, commercial, and SME lending, alongside specialist mortgages.

Looking forward, Metro Bank has established a clear growth trajectory, targeting mid-to-upper teens Return on Tangible Equity (RoTE) by 2027. The bank has already achieved its cost of deposits and operating costs targets ahead of schedule, demonstrating strong momentum for future growth.

Innovation and Customer Protection Initiatives

In a groundbreaking move, Metro Bank has become the first UK bank to integrate AI-powered scam detection technology through its partnership with Ask Silver. This innovative Scam Checker allows both personal and business customers to instantly verify potential scams by simply photographing suspicious communications via WhatsApp, with AI technology providing rapid fraud assessment and safety recommendations.

The bank’s network of stores continues to play a crucial role in growing target markets, with specialist relationship banking colleagues driving positive outcomes for customers and communities across the UK. Management remains confident in the bank’s differentiated model and clear path to further growth.