Metro Bank returns to profit after cost cuts and lending boost

Metro Bank has revealed it returned to a profit over the first half of 2025 (Mike Egerton/PA) Mike Egerton

Metro Bank has returned to profitability in the first half of 2025 after implementing significant cost-cutting measures and expanding its corporate lending operations. The London-listed lender reported a statutory pre-tax profit of £43.1 million for the six months to June, a dramatic turnaround from the £33.5 million loss recorded in the same period last year.

The bank's total revenues surged by 22 per cent to £286 million on an underlying basis compared with the previous year. Operating costs fell by eight per cent year on year as the company continued to streamline its operations following extensive restructuring efforts.

Workforce cuts drive savings

Metro Bank has trimmed its workforce by approximately 30 per cent as part of its cost-reduction strategy, leaving it with around 2,500 employees nationwide. The bank also abandoned its signature seven-day-a-week opening hours across branches, which had been a central feature since it became the first new high street bank to launch in the UK in more than 100 years in 2010.

Despite scaling back operations, Metro maintains 76 branches, which it calls "stores", and claims to still offer the longest opening hours of any high street bank. Chief executive Daniel Frumkin confirmed the company has no further plans for significant cost reductions, stating that the majority of staff cuts were implemented last year.

Record lending growth

"We don't have any plans for any other further major restructures or any further real cost-cutting... we've done all of the heavy lifting," Frumkin said. The bank has shifted its focus towards specialist lending, doubling new lending to corporate, commercial and small business customers to a record £1 billion over the period.

This strategic pivot comes after Metro secured a crucial £925 million funding package in 2023, which helped secure its future on British high streets. Colombian billionaire Jaime Gilinski Bacal became a majority shareholder through his firm Spaldy Investments as part of the rescue deal.

Future outlook remains positive

Frumkin confirmed that Gilinski Bacal remains "still engaged in the business and he is committed to making sure Metro continues to deliver on its plans going forward". The chief executive praised the bank's performance as reflecting "the successful execution of our strategy and decisive actions we have taken".

As Metro Bank celebrates its 15th anniversary, Frumkin highlighted the company's "unique relationship-led model, specialist lending expertise and expanding store network" as key differentiators that allow it to "support customers, communities and help businesses to grow".

(PA/London) Note: This article has been edited with the help of Artificial Intelligence.