Metro Bank Holdings Plc · LSE:MTRO
Metro Bank — Metro Bk Hldgs — H1 2025 Earnings Presentation
33 slides from Metro Bank's earnings presentation, Aug 6, 2025
Slide 1: H1 2025 Interim Results
H1 2025 Interim Results 6 August 2025
Slide 2: Agenda
Agenda Overview Daniel Frumkin, Chief Executive Officer Financial performance Marc Page, Chief Financial Officer Strategy driving the future Daniel Frumkin, Chief Executive Officer Q&A Daniel Frumkin, Chief Executive Officer Marc Page, Chief Financial Officer
Slide 3: Strategic actions deliver strong performance
Strategic actions deliver strong performance £45m underlying profit in H1’25 - up 268% YoY Record growth in Corporate & Commercial 290 £1.0bn Revenue 22% YoY 280 £0.7bn 270 £0.5bn £800m 260 credit 250 £0.4bn approved £0.3bn 240 pipeline 230 Costs 8% YoY 220 H1 2024 H2 2024 H1 2025 H1 2023 H2 202
Slide 4: Clear path to delivering mid-to-upper teens RoTE by 2027
Clear path to delivering mid-to-upper teens RoTE by 2027 Strategic Driver H1 delivery Further action to hit guidance 8% reduction half-on-half, ahead of guidance, driven by Maintain discipline. Costs below run-rate Cost Discipline continued cost discipline needed to hit 2027 guidance Cost of Deposit
Slide 5: Why we are winning
Why we are winning Structurally advantaged to deliver best-in-class risk adjusted returns Risk adjusted lending yield [1] 3% 4% 5% 6% 7% Local relationship-led service model 0% 1% H1’25 Target positioning H2’24 Generating low-cost deposits 2% Cost of deposits H1’24 3% Efficiently scalable 4% 5% Fund
Slide 6: Actions taken build confidence in reconfirming guidance
Actions taken build confidence in reconfirming guidance 2025 2026 2027 2028 Exit NIMs to be between Exit NIMs to be between Exit NIMs to be between NIM 3.00%-3.25% 3.60%-4.00% 4.00%-4.50% 4%-5% year-on-year Cost-to-income to be Cost-to-income to be Cost-to-income to be Costs cost reduction between 7
Slide 7: Financial Performance
Financial Performance Marc Page Chief Financial Officer
Slide 8: Trading momentum in H1 2025 drives significant increase in profitability
Trading momentum in H1 2025 drives significant increase in profitability Lowered exit cost of deposits Increased exit NIM Increased revenue (£m) Lowered cost:income ratio 2.95% 286 109% 2.65% 270 95% 82% 2.07% 234 1.78% 1.40% 1.02% H1 24 H2 24 H1 25 H1 24 H2 24 H1 25 H1 24 H2 24 H1 25 H1 24 H2 24 H1
Slide 9: Structural growth drivers
Structural growth drivers ❶ ❷ ❸ ❹ Managed cost Repricing of Reduced Active asset of deposit Treasury operating costs rotation reductions assets
Slide 10: Optimised cost of deposits, providing lasting strategic advantage
❶ Optimised cost of deposits, providing lasting strategic advantage NIBLs remain double the market average[1] Active deposit optimisation drives exit CoD down 38bps 11% 7% 15% 34% 49% 50% 49% 48% 2.07% 1.40% 40% 43% 1.02% 36% 18% H1 2024 H2 2024 H1 2025 Market peers H1 2024 H2 2024 H1 2025 NIBLS Var
Slide 11: Continued operating cost discipline delivering 8% reduction in H1 2025
❷ Continued operating cost discipline delivering 8% reduction in H1 2025 Underlying operating costs reduced further Continued improvements in cost to income ratio £255m £256m HoH 8% reduction £23m £235m £32m £22m £121m £125m £113m 109% 95% 82% £111m £99m £100m H1 2024 H2 2024 H1 2025 H1 2024 H2 2024
Slide 12: Treasury asset repricing presents revenue tailwinds
❸ Treasury asset repricing presents revenue tailwinds Future benefit from Treasury asset repricing [1] Benefit builds to £56m annualised PBT uplift entering 2028 [1] 10bps 29bps 37bps £m 2025 2026 2027 6.6% Balance maturing 495 1,015 531 5.1% Yield uplift on maturity 3.12% 2.79% 2.33% £56m Cumulativ
Slide 13: Record growth in Corporate and Commercial lending
❹ Record growth in Corporate and Commercial lending Increased core business lines by 29% in H1 2025 Doubled Corporate and Commercial lending year-on-year Lending balances H2 2024 H1 2025 HoH % HoH £bn £1.0bn Commercial 2.7 3.1 16% 0.4 Specialist mortgages 0.7 1.2 78% 0.5 Core business lines 3.4 4.3
Slide 14: Asset rotation strategy driving improved yields
❹ Asset rotation strategy driving improved yields £1bn new Commercial originations >350bps over base rate Targeted Mortgage mix shift drives increased yield £0.6bn (£0.6bn) £1.0bn (£0.6bn) £5.2bn £5.2bn £3.1bn 5.77% 4.60% £2.7bn 4.51% Gross new Attrition 4.59% 3.33% Total yield yield Total 3.46% Spr
Slide 15: Execution of structural growth drivers increase NIM and widen jaws
Execution of structural growth drivers increase NIM and widen jaws Active asset rotation and CoD reduction drives NIM expansion Strategic actions drive significant increase in operating jaws 0.91% 2.95% (0.20%) Revenue 22% YoY 0.45% 1.78% Costs 8% YoY H12024 H1 2024 Asset rotation Cost of deposi
Slide 16: Significant increase in profit adds to materially strengthened capital position
Significant increase in profit adds to materially strengthened capital position Management action drives profitability Capital position driven by profits, AT1 raise and UPL sale [1] Underlying Profit Before Tax, £m 7% 0.4% (1.5%) RoTE 1.3% 3.9% 27 45 27.0% 23.0% 18.9% 3 14.9% 21 12.5% 12.8% (27) 21
Slide 17: Actions taken build confidence in reconfirming guidance
Actions taken build confidence in reconfirming guidance 2025 2026 2027 2028 Exit NIMs to be between 3.00%-3.25% Exit NIMs to be between Exit NIMs to be between NIM 3.60%-4.00% 4.00%-4.50% H1 2025: 2.95% exit NIM 4%-5% year-on-year cost reduction Cost-to-income to be Cost-to-income to be Cost-to-inco
Slide 18: Strategy driving the future
Strategy driving the future Daniel Frumkin Chief Executive Officer
Slide 19: Strategic pillars provide confidence in delivering guidance
Strategic pillars provide confidence in delivering guidance Costs Infrastructure Revenue • 1,700/38% fewer on-shore colleagues • Strategic partnership with Infosys • Tripled new Corporate and Commercial Lending from H1’23 • Reduced store hours • Upgraded financial crime capabilities • Credit Approve
Slide 20: Why we are winning
Why we are winning Local relationship-led Generating low-cost Efficiently scalable service model deposits Only bank offering dedicated 1.02% Strategic partnership relationship management to business Exit Cost of Deposits- the lowest of any with Infosys driving automation, of all sizes UK High Street
Slide 21: Why we are winning: funding high-yield specialist lending
Why we are winning Funding high-yield specialist lending To achieve 2027 guidance, Metro Bank needs to Strong experience in Corporate and 1 in 15 SMEs capture only a fraction of total addressable SME & 70% Commercial Have an existing Commercial market [1] >400 colleagues with avg. 20 years’ experien
Slide 22: Why we are winning
Why we are winning Structurally advantaged to deliver best-in-class risk adjusted returns Risk adjusted lending yield [1] 3% 4% 5% 6% 7% Local relationship-led service model 0% 1% H1’25 Target positioning H2’24 Generating low-cost deposits 2% Cost of deposits H1’24 3% Efficiently scalable 4% 5% Fund
Slide 23: Q&A
Q&A Daniel Frumkin, Chief Executive Officer Marc Page, Chief Financial Officer
Slide 24: Appendices
Appendices
Slide 25: P&L
P&L £m H1 2025 H2 2024 H1 2024 HoH YoY Net interest income 222.9 206.0 171.9 8% 30% Net fees and other income 63.4 63.4 62.0 0% 2% Net gains/(losses) on sale of assets (0.2) 0.1 0.1 >(100%) >(100%) Total underlying revenue 286.1 269.5 234.0 6% 22% Underlying operating costs (234.7) (255.8) (254.6) 8
Slide 26: Balance sheet
Balance sheet £m H1 2025 H2 2024 H1 2024 HoH YoY Loans and advances to customers 8,715 9,013 11,543 (3%) (24%) Treasury assets 6,386 7,301 8,819 (13%) (28%) Other assets 1,327 1,268 1,127 5% 18% Total assets 16,428 17,582 21,489 (7%) (24%) Deposits from customers 13,363 14,458 15,726 (8%) (15%) Depo
Slide 27: Guidance Modelling Inputs as provided in FY 2024 results
Guidance Modelling Inputs as provided in FY 2024 results • Mortgage lending originations > 200bps above prevailing reference rate SWAP from H1’25 NIM • Commercial lending originations continuing at > 350bps above prevailing Bank of England base rate • Benefit from fixed rate treasury and mortgage ma
Slide 28: Strong asset quality with continued benign expected credit loss
Strong asset quality with continued benign expected credit loss Expected Credit Loss (£m)1 Stable arrears trends across all portfolios 2 191 (30) 3 3 167 3.8% 3.3% 2.3% 2.3% 1.9% 0.7% H1 2024 H2 2024 H1 2025 Retail mortgages Commercial H2 2024 Unsecured Loans Portfolio Single H1 2025 portfolio sale
Slide 29: Retail mortgages – overview
Retail mortgages – overview Retail mortgage portfolio New lending loan-to-value Retail mortgages loan-to-value Average retail LTV: 60% at H125 vs 59% at FY24 29% 30% 28% H125 71% 25% 27% 69% 20% 20% £5.1bn 16% 15% 8% 9% 71% 1% 1% 0% 0% FY24 H125 < 50% 51-60% 61-70% 71-80% 81-90% 91-100% > 100% Owner
Slide 30: Retail mortgages – LTV and repayment type
Retail mortgages – LTV and repayment type Owner Occupied Loan-to-value profile Owner Occupied Repayment type 64% 66% 35% 33% Average owner occupied LTV: 58% 21% 22% 36% 34% 16% 15% 16% 16% 11% 12% 1% 2% 0% 0% (1) < 50% 51-60% 61-70% 71-80% 81-90% 91-100% > 100% Interest only Capital and interest FY2
Slide 31: Commercial – overview
Commercial – overview Commercial lending portfolio Term loans by industry sector Commercial customer deposits 30 Jun 31 Dec 6% Industry sector (£m) 2025 2024 20% Real estate (PBTL) 229 283 30% Real estate (other term loans) 445 414 H1 25 H1 25 Hospitality 547 442 £3.6bn 60% £6.5bn 14% Health & Socia
Slide 32: Macroeconomic scenarios used for IFRS9 provisioning assessment
Macroeconomic scenarios used for IFRS9 provisioning assessment Application of scenarios and weighting • Four probability weighted scenarios: Baseline (50%); Upside (20%), Downside (25%) and Severe Downside (5%) • Macroeconomic forecasts provided by Moody’s Analytics (June 2025) Macroeconomic scenari
Slide 33: Statutory to Underlying reconciliation
Statutory to Underlying reconciliation Half ended 30 June 2025 Statutory Impair/WO's Remediation Portfolio Underlying Net C&I costs Transformation costs £’million basis PPE/intangible assets costs Sales Basis Net interest income 222.9 - - - - - 222.9 Net fee and commission income 45.8 - - - - - 45.8