Metro Bank has reported a 41% increase in pre-tax profit to £61 million for the first half of 2026, marking its most profitable half-year on record. The banking group's strategy of focusing on specialist lending and expanding its branch network has driven the growth.
Lending growth and strategic shift
Lending in target areas, including corporate, small businesses, and specialist mortgages, grew by 43% year-on-year to £6.2 billion. Specialist mortgage lending alone surged by 73% to £2.2 billion. This follows a strategic pivot since 2023 to serve 'underserved markets'.
During the first half, the bank opened 35,000 new personal current accounts and 12,000 new business current accounts. Metro Bank operates 78 branches, which it calls 'stores', and considers its physical presence a key part of its relationship-based banking model.
Branch network expansion
In contrast to many UK banks that are reducing their branch networks, Metro Bank signed leases for three new sites in Leeds, Newcastle, and Nottingham this year. The bank says it continues to actively seek new locations to support its corporate, commercial, and SME banking offers.
Other major banks have made commitments to maintain their current branch numbers: HSBC until 2027, Santander until 2028, and NatWest until 2029. Nationwide Building Society has pledged to keep all 696 of its branches open until at least 2030.
CEO on competitive advantage
Chief Executive Daniel Frumkin said the bank's approach is a competitive advantage. 'Our relationship banking model is delivering a clear competitive advantage,' he said. 'We continue to invest in growth, signing three new store leases to bring Metro Bank to new communities, and adding new products and services in response to customer demand.'
