Metro Bank Holdings PLC
Full year results
Trading update 2024
27 February 2025
Metro Bank Holdings PLC (LSE: MTRO LN)
Results for year ended 31 December 2024
Highlights - 2024 statutory profit after tax of £42.5 million, post recognition of the deferred tax asset
- Underlying profit of £12.8 million in H2 2024, in excess of guidance of returning to profitability during Q4 2024
- Net Interest Margin at year end of 2.65%, ahead of guidance of 2.50% and up 113bps from nadir of 1.52% in February 2024
- Cost of deposits at year end of 1.40%, down from a peak of 2.29% in February 2024
- Corporate and Commercial new loan originations grew by 71% during 2024 and by 40% from H1 2024 to H2 2024
- Credit approved pipeline for corporate/commercial/SME already at >50% of total 2024 lending
- Continued balance sheet optimisation through the sale of £2.5 billion prime residential mortgages and £584 million of unsecured personal loans
- Transformational year in 2024 has created strong momentum; reiterating existing guidance for 2025, 2026 and 2027
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Daniel Frumkin, Chief Executive Officer at Metro Bank, said:
"It has been a transformational year for Metro Bank as we made substantial progress against our strategy, ending the period ahead of guidance, profitable, and with strong momentum going forward.”
“We have successfully continued our pivot towards higher margin business in the form of corporate, commercial and SME lending and specialist mortgages, while also taking significant steps to reduce our costs and optimising our funding model. We have simplified and strengthened our balance sheet, and as a result, end the year with a robust capital position.”
“Our network of stores helps us grow our target markets, with our specialist relationship banking colleagues driving positive outcomes for customers and communities across the UK. We are delivering on our strategy. Looking forward, we are confident that Metro Bank has a strong and compelling plan, differentiated model and clear path forward to further growth.”
Key Financials
£ in millions | 31 Dec 2024 | 31 Dec 2023 | Change from FY 2023 | 30 Jun 2024 | Change from H1 2024 |
| | | | | |
Assets | £17,582 | £22,245 | (21%) | £21,489 | (18%) |
Loans | £9,013 | £12,297 | (27%) | £11,543 | (22%) |
Deposits | £14,458 | £15,623 | (7%) | £15,726 | (8%) |
Loan to deposit ratio | 62% | 79% | (17pp) | 73% | (11pp) |
| | | | | |
CET1 capital ratio1 | 12.5% | 13.1% | (56bps) | 12.9% | (36bps) |
Total capital ratio (TCR) 1 | 14.9% | 15.1% | (24bps) | 15.0% | (14bps) |
MREL ratio1 | 23.0% | 22.0% | 100bps | 22.2% | 75bps |
Liquidity coverage ratio | 337% | 332% | 5pp | 365% | (28pp) |
£ in millions | FY 2024 | FY 2023 | Change from FY 2024 | H2 2024 | H1 2024 | Change from H1 2024 |
| | | | | | |
Total underlying revenue2 | £503.5 | £546.5 | (8%) | £269.5 | £234.0 | 15% |
Underlying profit/(loss) before tax3 | (£14.0) | (£16.9) | 17% | £12.8 | (£26.8) | 148% |
Statutory profit/(loss) before tax | (£212.2) | £30.5 | (795%) | (£178.6) | (£33.5) | (433%) |
Statutory profit/(loss) after tax | £42.5 | £29.5 | 44% | £75.6 | (£33.1) | 328% |
Net interest margin | 1.91% | 1.98% | (7bps) | 2.22% | 1.64% | 58bps |
Lending yield | 5.33% | 4.72% | 61bps | 5.48% | 5.18% | 30bps |
Cost of deposits | 1.95% | 0.97% | 98bps | 1.72% | 2.18% | (46bps) |
Cost of risk | 0.06% | 0.26% | (20bps) | 0.01% | 0.10% | (10bps) |
Underlying EPS | (2.1p) | (8.4p) | 75% | 1.9p | (3.9p) | 139% |
Book value per share | £1.76 | £1.70 | 4% | £1.76 | £1.64 | 7% |
Tangible book value per share | £1.21 | £1.40 | (13)% | £1.21 | £1.37 | (12)% |
- Excluding recently announced unsecured personal loans portfolio sale. Pro forma on completion of the performing unsecured personal loans portfolio sale in late Q1 2025 is estimated to result in a total capital plus MREL ratio of 24.5% and CET1 ratio of 13.4%
- Underlying revenue excludes grant income recognised relating to the Capability & Innovation fund
- Underlying loss before tax is an alternative performance measure and excludes impairment and write-off of property, plant & equipment (PPE) and intangible assets, transformation costs, remediation costs, costs incurred as part of the holding company insertion and costs of the capital raise and refinancing in H2 2023
Investor presentation
A presentation for investors and analysts will be held at 9AM (UK time) on 27 February 2025. The presentation will be webcast on:
https://webcast.openbriefing.com/metrobank-fy24/
For those wishing to dial-in:
From the UK dial: +44 800 358 1035
From the US dial: +1 855 979 6654
Access code: 126674
Other global dial-in numbers: https://www.netroadshow.com/events/global-numbers?confId=67110
Financial performance for the year ended 31 December 2024
Deposits
£ in millions | 31 Dec 2024 | 31 Dec 2023 | Change from FY 2023 | 30 Jun 2024 | Change from H1 2024 |
| | | | | |
Demand: current accounts | £5,791 | £5,696 | 2% | £5,662 | 2% |
Demand: savings accounts | £7,534 | £7,827 | (4%) | £8,108 | (7%) |
Fixed term: savings accounts | £1,133 | £2,100 | (46%) | £1,956 | (42%) |
Deposits from customers | £14,458 | £15,623 | (7%) |
