Metro Bank has recorded a profit of £98.1m in 2025, after publishing a loss of £14m in 2024.

In the year to 31 December, the high street bank saw its new corporate, commercial and SME lending increase by 67%, which is a record for the bank.

Its revenue increased by 16% to £585.1m, while its loan to deposit ration increased by four percentage points to 66%.

Furthermore, its net interest income jumped by 22% and its return on tangible equity stood at 6.4%, which continues to increase in line with guidance.

Despite these results, Metro Bank recorded a 7% drop in its customers deposits, which totalled £13.4bn, while its fixed-term savings account deposits fell by 40% to £682m.

Meanwhile, its current account deposits increased by 1% to £5.86bn and demand for its savings accounts dropped by 8% to £6.9bn across its range of products.

Metro Bank said that stores remain a "key element" of its service offering and strategy, and has opened three stores in 2025 in Chester, Salford and Gateshead, with new leases signed in Newcastle and Leeds.

Chief executive officer at Metro Bank, Daniel Frumkin, described the year as one of “strong growth and successful delivery”.

He concluded: "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."

In its outlook, the bank stated that it is well placed to continue its strategic delivery in the year ahead and over the medium term.

It therefore expects to more than double returns in six months and nearly treble them in 18 months through the ongoing execution of its strategy.

Investment director at AJ Bell, Russ Mould, concluded: "Metro Bank made a big splash when it launched at the start of the last decade with a plan to reinvent high street banking with an emphasis on convenience and service. Little touches like putting out dog bowls for its customers’ canine companions won it a lot of publicity.

"The bank got a brutal reality check when the business model proved prohibitively expensive and it saw several regulatory and accounting failures which damaged its credibility. However, recent turnaround efforts are starting to gain traction and suggest there may be something to salvage from the Metro Bank brand. This may have meant abandoning its signature seven-day opening model, but potentially a necessary sacrifice in the quest to secure a long-term sustainable future for the bank.

"Metro returned to profit in 2025 after years of losses and sees a step change in returns in the coming months as costs come out and it exits a costly debt set-up."

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