Its commercial mortgage balance totalled £3.6bn by the end of the year, a 34% growth on 2024.
Metro Bank said growth in new commercial, corporate and SME lending was offset by attrition, particularly in commercial real estate and commercial buy to let (BTL).
It said the performance was underscored by a credit-approved pipeline of £800m.
The bank also saw a 137% increase in its specialist mortgages book, rising from £700m in 2024 to £1.7bn in 2025. Combined with the prime mortgage book in run-off, its retail mortgage book had a value of £4.9bn in 2025 and remained the largest component of its lending book, accounting for 55%.
Metro Bank said there was strong progress with its specialist mortgage originations, and it had now been established as a provider of choice.
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The balances of its target lending segments – consisting of corporate, commercial and SME, and specialist mortgages – rose by 56% year-on-year to £5.2bn. Including its legacy run-off booked, which totalled £3.8bn, total loans were £9bn.
Metro Bank’s underlying profit and revenue reach highs
Metro Bank generated the highest net interest income and revenue in its history, rising 22% to £460m and 16% to £858.1m respectively.
The bank said this was achieved despite the base rate cuts over the year. Further, its net interest margin rose from 1.91% to 2.98% and its lending yield improved from 5.33% in 2024 to 5.69% in 2025.
It delivered an underlying profit of £98.1m, up from a loss of £14m in 2024. Metro Bank’s statutory profit after tax rose 64% to £69.7m.
The bank said it was “well-placed to continue its strategic delivery and growth trajectory”, both for the year ahead and in the medium term.
Metro Bank said it had a “clear strategy and resilient business model”, which would support profitable growth in line with its plans. It expects to more than double returns in six months and nearly treble them in 18 months.
Daniel Frumkin, chief executive of Metro Bank, said: “2025 was a year of strong growth and successful delivery for Metro Bank. Through focused execution of our strategy and pivot to higher-margin business, we have boosted underlying profits to £98m, the highest in our 15-year history, whilst reducing operating costs ahead of target. Metro Bank expects to more than double returns in six months and nearly treble them in 18 months through the ongoing execution of our clear strategy.
“Metro Bank stands out for our focus on relationship banking, our full service offer to SMEs and store presence. We are capturing market share in our target segments and have a deep pipeline of attractive lending opportunities. We lent a record £2bn to companies up and down the UK, supporting growth and creating jobs.
“Looking forward, we have a clear strategy and resilient business model that will support profitable growth against a changing market backdrop. Our revised guidance shows we expect to more than double RoTE throughout the fourth quarter of this year and nearly treble it to greater than 18% for 2028. This will see us delivering one of the highest returns of any UK high street bank.”
