Metro Bank reported £1bn of new gross lending in H1 2026. It said growth in new corporate, commercial and SME lending was offset by attrition, particularly in commercial real estate and portfolio buy to let (BTL).
Combined with its prime mortgage book in run-off, total retail mortgages stood at £4.8bn at the end of H1 2026, making up 53% of the bank’s lending portfolio.
The bank said its target lending segments, comprising corporate, commercial and SME banking alongside specialist mortgages, grew by 43% year-on-year to £6.2bn.
Commercial lending rose by 30% from £3.1bn to £4bn during the period, supported by £1bn of new gross lending in the first half of the year.
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Profitability and margin improve
Underlying profit before tax rose to £60.6m, up 34% from £45.1m a year earlier, marking the most profitable half-year in Metro Bank’s history.
Underlying net interest income increased by 8% year-on-year to £241.5m, while underlying revenue rose by 5% to £301m.
Net interest margin improved from 2.87% to 3.18%, with exit net interest margin reaching 3.25% at the end of June.
Credit quality strengthens
Metro Bank reported an allowance for impairment of £134m, down from £170m at the end of 2025. The bank said the reduction was driven by the sale of non-performing unsecured personal loans held within its run-off portfolio.
Credit performance also improved during the period, with arrears falling to 3.9%, compared with 4.9% a year earlier and 4.7% at the end of 2025. Non-performing loans declined to 4.39%, down from 5.42% in H1 2025 and 5.14% in H2 2025.
“Our relationship banking model is delivering a clear competitive advantage. We continue to invest in growth, signing three new store leases to bring Metro Bank to new communities, and adding new products and services in response to customer demand. Alongside the lowest cost of deposits of any UK high street bank, our growing mix of higher-yielding corporate, commercial and specialist mortgage lending is driving stronger risk-adjusted returns.
“As we move into the next half of the year, our record-high credit approved pipeline gives us a strong platform for further targeted lending”.
