Metro Bank reported a "significant increase" in profit for the first quarter compared to the second half of 2024, according to a trading update on Thursday.
The bank's shares saw a near four per cent rise during early trading, as reported by .
The London-based lender expressed confidence in meeting its full-year targets, attributing this optimism to a "structurally higher" net interest margin, a key indicator of a bank's profitability from lending.
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Metro Bank attributed the increased margin to ongoing asset rotation and deposit optimisation as it continues to shift its focus towards specialist mortgages and small business lending.
The bank also confirmed that its cost reduction efforts in 2025 were progressing as expected.
Metro sold its personal loan portfolio
In other developments, Metro Bank sold off its personal loan portfolio and reported a four per cent decrease in deposits to £13.8bn, down from £14.5bn at the end of 2024.
The bank identified the maturity of higher-cost fixed-term deposits and a continued emphasis on reducing excess liquidity and deposit costs as factors driving these losses.
Total net loans fell by six per cent from December 2024, which the bank said was due to a £584m sale of its personal loan portfolio.
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This transaction, with an undisclosed buyer, was finalised in February 2025 and resulted in an £11m gain for the FTSE 250 bank.
Peel Hunt analysts reacted to the sale by stating: "By downsizing exposure to legacy unsecured personal loans more rapidly than expected, Metro can free up funding and capital to scale up its commercial and corporate lending balances, which have higher risk-adjusted returns sooner than guided."
Daniel Frumkin, the Chief Executive of Metro Bank, reflected on the update by saying: "We have seen further growth in our corporate and commercial lending, with Metro Bank's relationship banking and breadth of services creating differentiation for us in the market."
He also looked towards the future, noting, "Looking ahead, we will continue to play an important role in supporting our customers as the 海角视频 focuses on delivering economic growth. We remain firmly on track to meet our guidance given at full year."