Metro Bank has returned to profitability after aggressive cost-cutting measures, including a 30% workforce reduction and the sale of mortgage assets.
The UK lender, which secured a £925 million bailout in 2023, reported an underlying pre-tax profit of £12.8 million for the second half of the year, recovering from a £26.8 million loss in the same period the year before. However, its statutory pre-tax loss for 2024 stood at £212 million.
The bank exceeded its initial cost-cutting target, eliminating over 1,400 jobs and achieving £80 million in annualised savings. It also offloaded £2.5 billion in residential mortgages to NatWest and recently agreed to sell £584 million in personal loans to an undisclosed buyer.
Despite restructuring gains, Metro Bank faces ongoing challenges. Loan arrears rose to 5.6%, up from 2.8% the previous year, due to economic pressures such as declining property values and higher borrowing costs. The bank is now focusing on higher-margin lending in corporate, commercial, and SME sectors and specialist mortgages.
