The bank has pivoted to the specialist lending market after selling its residential loan book to NatWest in 2024, and in 2025, said it wanted to be the “specialist lender of choice”.
During the first three months of 2026, it saw an improved performance across corporate, commercial, SME lending and specialist mortgages, with lending rising 52% on the last year.
Meanwhile, there was a 3% reduction in the value of its runoff books to £3.6bn, which was also 27% lower than the year before.
Metro Bank said this would free up capital and liquidity to reinvest in its target segments.
Total gross loans and advances rose 6% year-on-year to £9.1bn, a 2% rise on the same period in 2025.
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The bank expected growth going forward as the approved pipeline for corporate, commercial and SME was in excess of £1bn, which it said would provide “significant growth momentum” in Q2 and beyond.
Daniel Frumkin, chief executive of Metro Bank, said: “We have started the year well, building on the positive momentum that we carried into 2026 by delivering continued profit growth and increased lending in our key target areas against a dynamic market backdrop. As we successfully rotate our lending and reshape the balance sheet, we have an established and high-quality pipeline, and the lowest cost of deposits of any UK high street bank. We are confident in reaffirming all guidance previously provided.
“Our commitment to relationship banking, our store network and the communities we operate in are positive differentiators, enabling us to win market share and increase lending. We look ahead with confidence and remain focused on delivering for our colleagues, customers, shareholders and supporting UK growth.”
