Metro Bank’s first-half profit surged 34% year-over-year as net interest margin hit a historic 325 basis points.
Metro Bank (LON:MTRO) reported a 34% year-over-year increase in underlying profit to £61 million for the first half of 2026, driven by higher-margin lending and treasury asset repricing. Return on average equity rose 270 basis points to 7.5%, while exit net interest margin expanded 30 basis points to 325 basis points, its highest level ever.
The bank’s cost-to-income ratio improved to 77% from 82% a year earlier. Management reaffirmed targets, including an exit NIM above 340 basis points in 2026 and return on tangible equity exceeding 13% in Q4. Commercial lending pipeline reached a record £1 billion, with £6 billion in deal flow during the period.
Total loan book grew 4% to £9.2 billion, with commercial lending now accounting for 44% of the portfolio, up from 35% a year earlier. Core business lines expanded 43%, or £1.9 billion, supporting growth.