The average loan to value of the mortgage book was 56 per cent.
Metro sold part of its residential mortgage book to NatWest in December 2020, with the aim of expanding into unsecured lending.
Retail mortgages remained the largest component of the lending book at 55 per cent in H1.
Net interest margin was running at 1.28 per cent as at 30 June 2021, in line with 31 December 2020, with lower cost of deposits, improved lending mix and higher lending yield offsetting the impact of the mortgage portfolio disposal and higher-than-expected deposits.
“Mortgage applicants benefited from enhancements to the existing mortgage offering and the launch of further specialist mortgage products during the first half of the year,” the bank said.
Additionally, Metro provided £3.4m of commercial lending, down 11 per cent, £1.6m of government-backed lending primarily Bounce Back Loan Scheme top ups, and £704,000 of consumer lending.
The loss before tax was £138.9m, compared to a loss of £240.6m in H1 2020.
“Financial performance reflects where we are in our turnaround plan, as well as the impact of national lockdowns,” said chief executive Dan Frumpkin.
“We are encouraged by the momentum we have achieved, including delivering on higher yielding mortgage products, lower cost of deposits and meaningful entry into the personal lending market.
“We remain focused on executing our strategic plan and returning to profitable growth,” Frumpkin said.
The bank’s CET1 capital ratio was 13.9 per cent, compared to its minimum requirement of 9.3 per cent.
Metro set out its strategic plan in February 2020.