Metro Bank – firmly positioning as one of the UK market leaders, shares up nearly 20% in seven weeks and heading higher

Mark Watson-Mitchell – 17.04.2026

At the start of last month, we featured the shares of Metro Bank (LON:MTRO) ahead of the reshaped banking group announcing its 2025 Finals.

The group’s shares were then trading at 122p, earlier this week they touched 148p, before closing at 141.60p last night.

Yesterday the £953m-capitalised company sent out its 2025 Report and Accounts, with its AGM to be held on Tuesday, 2^nd June.

2025 Final Results

On Wednesday 4^th March, the group reported its highest ever underlying profit before tax of £98m, a significant improvement from a £14m loss in 2024, which was driven by a 22% increase in Net Interest Income and a 16% rise in revenue.

The bank also achieved a 7% reduction in operating costs, exceeding its guidance, and saw a record 67% growth in new corporate, commercial, and SME lending, while its Net Interest Margin expanded to 2.98%.

It reported that its underlying momentum in the franchise remained strong, with over 32,000 new business current accounts and over 77,000 new personal current accounts opened in the year.

At that time, the company’s Management declared that 2025 was a year of strong growth and successful delivery for Metro Bank.

It stated that through focused execution of its strategy and its pivot to higher-margin business, the bank delivered the highest underlying profits in its 15-year history, the highest revenues and the highest net interest margin – all while reducing costs.

Looking ahead, the group reported that its resilient business model positioned it strongly for the future as it continues to support businesses and individuals across the UK.

Its positive momentum continued in 2025, with record growth lending in its key target areas of corporate, commercial and SME lending, and specialist mortgages – areas where its established relationship banking model positions us to win and create new business.

The Business

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

It offers relationship banking through a network of 78 stores in the UK, telephone banking from UK-based contact centres and digital banking via mobile app and online.

It is worth noting that Metro is an independent UK bank – it is not affiliated with any other bank or organisation.

Management Comment

CEO Daniel Frumkin stated that:

“2025 was a year of strong growth and successful delivery for Metro Bank.

Through focused execution of our strategy and pivot to higher-margin business, we have boosted underlying profits to £98 million, the highest in our 15-year history, whilst reducing operating costs ahead of target.

Metro Bank expects to more than double returns in 6 months and nearly treble them in 18 months through the ongoing execution of our clear strategy.

Metro Bank stands out for our focus on relationship banking, our full service-offer to SMEs and store presence.

We are capturing market share in our target segments and have a deep pipeline of attractive lending opportunities.

We lent a record £2 billion to companies up and down the UK, supporting growth and creating jobs. 

Looking forward, we have a clear strategy and resilient business model that will support profitable growth against a changing market backdrop.

Our revised guidance shows we expect to more than double RoTE throughout the fourth quarter of this year and nearly treble it to greater than 18% for 2028.

This will see us delivering one of the highest returns of any UK High Street bank.”

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 (52.98%) 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%), Fidelity Management & Research (3.72%), Davis Selected Advisers (2.63%), Hargreaves Lansdown Asset Management (1.77%), Aberdeen Group (1.67%), BlackRock (1.46%), Goldman Sachs Group (1.45%), Merrill Lynch, Pierce, Fenner & Smith (1.38%), and Perea Capital (1.37%).

Brokers Views

Three firms closely follow the progress of Metro Bank, the consensus of their analysts suggest that the group’s shares are a Hold, and the average Target Price is 148p, the Lowest at 120p, while the Highest aim is for 175p.

Analyst estimates suggest that this current year could see £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

This morning I was somewhat surprised to discover that CEO Daniel Frumkin has been handed a £2.6m pay packet – the largest in Metro’s history – a year after slashing 1,000 jobs in response to the lenders near collapse.

This may look a high payment; however, it does look as though Frumkin is doing a good job and that he is worth the payment - time will tell.

But I am pleased to see the group’s shares, now 141.60p, continue to display strength and I believe that they have the momentum to rise further to trade around the 170p level.

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

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