Metro Bank – 2025 Finals due Wednesday will show massive uplift, shares 122p, analyst TP 170p

Mark Watson-Mitchell - 03.02.2026

This coming Wednesday, 4th March, will see the £824m-capitalised Metro Bank (LON:MTRO) declare its Final Results for the year to end-December 2025.

They should reveal an impressive leap from £14.0m of losses in 2024 to over £98.0m of pre-tax profits last year.

And that is just the start of a major recovery.

After some hassles three years ago, the group has undergone a significant period of change.

2024 proved to be a year of successful transformation, which saw the Bank return to underlying profitability through strong cost management and pivoting towards higher yielding commercial and specialist lending.

Relationship Banking is at the heart of what Metro does and it underpinned the strong momentum delivered in 2024.

Already we have seen evidence that a big profit push took place in 2025, and there is more to come yet.

The Business

The group opened its doors in the summer of 2010 and claimed to be the first High Street bank to open in the UK in over 100 years.

Since then, it has built a business that is providing meaningful competition against larger incumbents and offering a compelling alternative for small business and commercial customers.

Metro Bank provides corporate, commercial and SME banking and specialist mortgage lending, alongside retail and private banking services.

It focuses upon offering relationship banking through a network of 76 stores in the UK, telephone banking from UK-based contact centres and digital banking via mobile app and online.

It is a deposit-taking and lending institution with a focus on retail, private, small, and medium-sized enterprises and commercial customers.

The group’s personal banking services include bank accounts, business bank accounts, and insurance.

Its business banking services include business accounts, deposit accounts, borrowing options and insurance.

The company’s business bank accounts products include business bank accounts, commercial current accounts, community current accounts, foreign currency accounts and insolvency practitioner accounts.

The bank’s deposit account includes business instant access deposit account, business fixed term deposit account, community instant access deposit account, community fixed term deposit account, and others.

Its borrowing options include overdrafts, business credit cards, loans, asset finance, and invoice finance.

It serves various sectors such as property, healthcare, and hospitality & leisure.

Management Comment

At the time of the Third Quarter 2025 Trading Update, on Wednesday 5th November last year, CEO Daniel Frumkin stated that:

“Our positive momentum has continued in the third quarter, as we delivered strong financial performance and increased lending in our key target areas of Corporate, Commercial and SME and Specialist Mortgages.

As well as our successful asset rotation into these sectors, we have the lowest Cost of Deposits of any UK High Street bank, and our exit Net Interest Margin is already within full year guidance range.

Metro Bank has delivered consistently on its strategy and moves forward from a position of strength, supported by a strong credit approved pipeline and disciplined cost management which gives us confidence in meeting guidance.

Furthermore, we expect to be classified a transfer firm under the Bank of England’s new policy, removing the need for MREL going forward.

We remain focused on delivering for our colleagues, customers, shareholders and supporting UK growth, leveraging our relationship-focused banking model and diverse market offering.”

The Equity

There are some 673m shares in issue.

Following a 2023 rescue deal, Colombian billionaire Jaime Gilinski Bacal, known for building Latin American banking empires, became the largest and controlling shareholder (around 53%) through his Spaldy Investments vehicle.

Bacal invested heavily to become the majority owner when the bank needed capital, solidifying his role as the main backer before joining the board as a non-executive director.

Larger holders include Spruce House Investment Management (10.10%), Davis Selected Advisers (5.33%), Ruane, Cunniff & Goldfarb (5.15%), Conifer Management (4.99%), Kernow Asset Management (2.89%), Caius Capital (1.29%), Royal Bank of Canada (CI) (1.22%), Danie Frumkin, CEO (1.22%), JP Morgan Chase Bank (Investment Management) (0.69%) and BlackRock Investment Management (0.64%).

Brokers Views

There are three firms that closely follow the progress of Metro Bank.

The consensus of their analysts suggest that the group’s shares are a Hold, however the average Target Price is 148p, the Lowest at 120p, while the Highest aim is for 175p.

Analyst estimates suggest that the 2025 Finals will show Total Income of around £479.3m (£377.9m), with adjusted pre-tax profits of £98.9m (£14.0m loss), producing around 10.7p (6.3p) per share in earnings.

For this current year they indicate £706.8m income, while £180.3m profit is possible, worth 19.6p of earnings.

The 2027 year could see £806.3m income, with a further £80.0m added to total some £260.3m in pre-tax profits, generating earnings of 29.0p per share.

My View

It is still progressing through its transformational stages; however, the strength of 2025 looks as though it could well be bettered this year and then into 2027.

Based on analyst projections, the group’s shares, now at 122p, could well attract a lot of attention upon the announcement of this week’s figures.

A move above the 140p peak, reached less than a month ago, is more than possible.

(Profile 02.03.26 @ 122p set a Target Price at 140p)

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