METRO BANK VOWS TO OPEN MORE BRANCHES AS IT RETURNS TO PROFIT AFTER COST CUTTING DRIVE

Metro Bank has vowed to open more branches after reporting record profits after a major cost-cutting drive. 

The high street lender delivered £87.2million statutory pre-tax profit last year, against a £212.1million loss a year earlier, amid a shift towards corporate lending. 

On an underlying basis, the group's annual profit came in at £98million, the highest ever recorded by the bank.  

The group stressed that it remained committed to retail customers and would continue to open more high street banks.

Metro, which currently has 78 branches, said it had signed leases for new sites in Newcastle and Leeds, and believes it could grow to as many as 120 locations.

It comes as other major high street banks have cut the number of branches, boosting their digital operations.  

Metro's record annual profit came after it reduced its costs by 7 per cent over the year, more than the 4 per cent to 5 per cent range previously expected.

Chief executive Dan Frumkin told reporters that the reductions were linked to renegotiations with some of its larger suppliers, the 'streamlining' of some operations, as well as increased automation.

The group has reduced its cost base since 2023 as part of a major turnaround, which included more than 1,000 job cuts. It also scrapped the seven-day-a-week opening hours across its branches, a central feature of the business.  

But this week, the lender's boss said Metro Bank had 'no intention to have another redundancy programme'.

The group said it expects its costs to remain flat this year after recent reductions already put it on track to meet guidance for next year.

Total underlying revenue rose by 16 per cent to £585.1million, despite reporting a reduction in assets and loans on its books. Net interest income grew by 22 per cent. 

It said it was boosted by its strategy to focus more on corporate, SME and specialist lending.

Loans and advances across these areas increased by 56 per cent to £5.23billion for the period.

Metro Bank expects to more than double its return on tangible equity during the fourth quarter of this year and nearly triple it to above 18 per cent by 2028. 

Hugh Fairclough, partner and head of financial services at RSM UK, said: 'Metro’s results show a clear shift from earlier turbulence, having stabilised its cost base and rebuilt confidence through sharper discipline and renewed operational focus. 

'This marks a meaningful turning point in the Bank’s history, with Metro overcoming regulatory and cost pressures, and now moving forward with greater control and resilience.'

2026-03-04T10:28:59Z