Metro Bank puts itself up for sale
Metro Bank has announced a strategic review, including the commencement of a formal sale process.
The bank said this was part of its strategy to accelerate its growth, following what it described as a “substantial transformation” over the years.
Metro Bank said it was entering this phase with “strong operating momentum”, following its Q3 trading update, which showed a 37% year-on-year growth in lending across its targeted corporate, commercial, SME lending and specialist mortgage segments.
Metro Bank’s board said it was “highly confident” in its standalone growth prospects and ability to deliver its guidance, a projected 13% return on tangible equity (RoTE) in Q4 this year, 15% in 2027 and 18% in 2028.
The bank also delivered a record-high profit in 2025.
It said the progress made it “well-positioned to consider a broader range of strategic opportunities for its next phase of growth”.
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Its statement added: “Against this backdrop, the board unanimously believes that evaluating potential interest in the company through a formal sale process, alongside continuing to execute the standalone plan, will maximise the value creation opportunities available to shareholders and deliver benefits for all stakeholders.”
Metro Bank is not in any active discussions regarding its sale, adding that there was no certainty that a sale would be made.
Recovery and pivot to specialist lending
Metro Bank has turned itself around after it was found to have misled investors by giving false information about its mortgage book risk in 2018, resulting in a £10m fine.
That same year, it unsuccessfully applied for advanced internal rating-based (AIRB) approval to use its internal risk models, determining how much capital Metro Bank needs to set aside.
Metro Bank then secured a £925m rescue deal to raise capital, before selling its residential mortgage book to NatWest.
The bank returned to profitability last year and began to focus on the specialist lending market, aiming to become the “specialist lender of choice”.
