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Metro Bank
(LSE:MTRO)
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Rating:59Neutral
Price Target:
181.00 p
▲(1.00% Upside)
Action:Reiterated
Date:08/11/26
The score is primarily held back by financial quality concerns—especially the very large negative operating/free cash flow in 2024–2025 and higher leverage—despite improving profitability and revenue momentum. The latest earnings call was constructive with reconfirmed guidance, rising RoTE, and a clearer margin/lending pathway, while technicals are mildly supportive and valuation is only moderate with no dividend yield provided.
Positive Factors
Deposit franchise & liquidity
A high share of current-account funding (43%) and strong liquidity (LCR 270%) mean structurally cheaper, sticky funding and a large liquidity buffer. That durable funding mix supports low funding costs, capacity to grow lending and resilience through funding stress scenarios.
Negative Factors
Very weak cash generation
Sustained large negative operating and free cash flows over two years materially weaken internal funding capacity. This structural cash deficit increases reliance on external funding, raises refinancing and liquidity risk, and questions sustainability of reported earnings improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit franchise & liquidity
A high share of current-account funding (43%) and strong liquidity (LCR 270%) mean structurally cheaper, sticky funding and a large liquidity buffer. That durable funding mix supports low funding costs, capacity to grow lending and resilience through funding stress scenarios.
Read all positive factors
Metro Bank (MTRO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.17B
Dividend YieldN/A
Average Volume (3M)1.08M
Price to Earnings (P/E)22.1
Beta (1Y)0.90
Revenue Growth0.76%
EPS Growth-49.33%
CountryUK
Employees2,891
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.08
Shares Outstanding673,619,600
10 Day Avg. Volume946,774
30 Day Avg. Volume1,084,048
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)0.65
Price to Sales (P/S)0.94
P/FCF Ratio-0.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£190.00Price Target Upside6.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.12
Revenue Forecast (FY)£659.00M
Metro Bank Business Overview & Revenue Model
Company Description
Operating across the United Kingdom, Metro Bank PLC and its associated entities offer a comprehensive suite of financial services, catering to both individual and business clients. For individual customers, the bank delivers a diverse range of per...
How the Company Makes Money
Metro Bank primarily makes money through interest income and fee-based income generated from providing banking products and services. Its core revenue stream is net interest income: it takes deposits (current accounts and savings) and uses those f...
Metro Bank Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 17, 2027
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial update: record underlying profit, historic NIM and strong lending pipeline underpin a credible path to materially higher RoTE by 2028. Management highlighted multiple durable advantages—deposit franchise, asset rotation, treasury repricing and cost discipline—while acknowledging near-term headwinds in fee income, timing effects on NII, deposit mix shifts and the conditional nature of some mechanical RoTE drivers. Overall, the positives on growth, margin expansion and efficiency outweigh the challenges, though execution and market risk remain important to deliver the full plan.Positive Updates
Record Underlying Profit
Underlying profit of GBP 61 million for H1 2026, up 34% year-on-year and the largest in Metro Bank's history.
Negative Updates
Fee Income Weakness
Fee income stepped down in the half and was a partial offset to NII gains. Management cited competition in FX and interchange; fees are expected to be broadly flat in H2 but remain a weaker line versus interest income momentum.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Underlying Profit
Underlying profit of GBP 61 million for H1 2026, up 34% year-on-year and the largest in Metro Bank's history.
Read all positive updates
Company Guidance
Management reconfirmed guidance, pointing to H1 underlying profit of GBP61m (+34% y/y) and RoTE of 7.5% as the base for a mechanical RoTE uplift of >9ppt to ~16.7%, with targets of >13% in Q4, >15% in 2027 and >18% in 2028. Exit NIM is 3.25% with Q4 treasury repricing worth +15bp (c.3.40% exit) and further asset rotation expected to push NIM above 340bp; GBP1.0bn of 2026 treasury maturities (GBP833m in H2) repricing ~50bp is expected to add ~GBP24m (15bp NIM / 2.7% RoTE). Lending momentum underpins the plan: GBP1.0bn commercial/corporate lent in H1, a GBP1.0bn credit‑approved pipeline (largest ever) with historical conversion of 120–130% implying GBP1.2–1.3bn new lending in H2, supported by GBP6bn deal flow (95% direct). Other drivers cited: underlying revenue H1 GBP301m (+5%), NII +8%, cost-to-income 77% (down 5pp), costs GBP231m (−2% y/y; FY26 broadly flat), loan book GBP9.2bn (+4%), core lines +43% (GBP1.9bn), runoff −34%, core =67% of book, commercial =44% (vs 35% a year ago), specialist mortgages 45% (vs <25%), cost of risk 22bp (vs TTC 40–60bp), deposit cost 98bp with 43% current‑account funding, LCR 270% and L/D 69%, plus a GBP2.6bn hedge notional (avg dur ~3y, yield 3.4%) and low NII sensitivity (low single‑digit £m).Metro Bank Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
51
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 851.30M | 862.60M | 962.80M | 615.70M | 483.60M | 392.80M |
| Gross Profit | 592.40M | 583.20M | 405.30M | 615.70M | 483.60M | 392.80M |
| EBITDA | 196.50M | 148.90M | -135.10M | 573.10M | 445.40M | 352.60M |
| Net Income | 88.30M | 69.70M | 42.50M | 29.50M | -72.70M | -248.20M |
Balance Sheet | ||||||
| Total Assets | 17.02B | 16.48B | 17.58B | 22.25B | 22.12B | 22.59B |
| Cash, Cash Equivalents and Short-Term Investments | 2.47B | 2.19B | 2.81B | 3.89B | 1.96B | 3.57B |
| Total Debt | 2.22B | 1.58B | 675.00M | 694.00M | 571.00M | 588.00M |
| Total Liabilities | 15.73B | 15.22B | 16.40B | 21.11B | 21.16B | 21.55B |
| Stockholders Equity | 1.28B | 1.24B | 1.18B | 1.13B | 956.00M | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | 262.00M | -1.12B | -1.43B | 616.00M | -1.21B | 2.81B |
| Operating Cash Flow | 283.00M | -1.09B | -1.39B | 628.00M | -1.19B | 2.85B |
| Investing Cash Flow | -97.00M | 260.00M | 327.00M | 1.02B | -402.00M | -2.25B |
| Financing Cash Flow | -53.00M | 206.00M | -22.00M | 291.00M | -25.00M | -29.00M |
Metro Bank Technical Analysis
Positive
179.20
Price Trends
170.84
Positive
156.30
Positive
137.80
Positive
Market Momentum
1.22
Positive
54.21
Neutral
62.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MTRO, the sentiment is Positive. The current price of 179.2 is above the 20-day moving average (MA) of 174.93, above the 50-day MA of 170.84, and above the 200-day MA of 137.80, indicating a bullish trend. The MACD of 1.22 indicates Positive momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 62.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MTRO.
Metro Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £1.49B | 8.89 | 11.98% | 5.57% | -6.82% | -7.03% | |
69 Neutral | £131.11M | 7.09 | 6.84% | 6.31% | -6.35% | 16.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | £66.04B | 14.29 | 11.05% | 3.22% | -16.61% | 21.26% | |
59 Neutral | £1.17B | 22.08 | 7.00% | ― | 0.76% | -49.33% | |
57 Neutral | £286.52M | 16.89 | 4.70% | 2.23% | 0.49% | -11.39% | |
47 Neutral | £629.33M | -12.11 | -2.03% | ― | -18.61% | 48.41% |
* Financial Sector Average
GB:MTRO
Metro Bank
176.20
65.80
59.60%
GB:CBG
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424.00
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GB:ARBB
Arbuthnot Banking
830.00
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-13.07%
GB:LLOY
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115.20
34.71
43.12%
GB:PAG
Paragon Banking Group PLC
817.50
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GB:STB
Secure Trust Bank
1,568.00
381.97
32.21%
Metro Bank Corporate Events
Business Operations and StrategyFinancial Disclosures
Metro Bank posts record H1 profit as core lending surges
Positive
Aug 4, 2026
Metro Bank reported its most profitable half-year ever, posting underlying profit before tax of £61 million for H1 2026, up 34% year-on-year, alongside a 43% surge in core target lending to £6.2 billion and continued net interest margin ...
Business Operations and StrategyRegulatory Filings and Compliance
Metro Bank updates total voting rights after new employee scheme share admissions
Neutral
Aug 3, 2026
Metro Bank Holdings PLC has increased its issued share capital by admitting 14,534 new ordinary shares to trading on the London Stock Exchange during July 2026 under existing block admissions for its employee share schemes. Following this admissio...
Business Operations and StrategyExecutive/Board Changes
Metro Bank Director Dorita Gilinski Takes Non-Executive Role at GeoPark
Neutral
Jul 15, 2026
Metro Bank Holdings PLC has announced that non-executive director Dorita Gilinski has joined the board of GeoPark Limited as a non-executive director, effective 14 July 2026. The move underscores the breadth of external board experience within Met...
Delistings and Listing ChangesRegulatory Filings and Compliance
Metro Bank updates share capital after new employee scheme admissions
Neutral
Jul 1, 2026
Metro Bank Holdings PLC, the listed parent of UK-focused Metro Bank, operates across corporate, commercial, SME and retail banking, with a particular emphasis on relationship banking via its branch network and digital platforms. The group is autho...
Shareholder Meetings
Metro Bank Wins Full Shareholder Backing at 2026 AGM
Positive
Jun 2, 2026
Metro Bank Holdings PLC, the listed holding company of Metro Bank’s UK banking group, serves corporate, commercial, SME, retail and private clients through a mix of physical branches, call centres and digital platforms. The group is authoris...
Private Placements and FinancingRegulatory Filings and Compliance
Metro Bank updates total voting rights after small employee-related share issue
Neutral
Jun 1, 2026
Metro Bank Holdings PLC has updated the market on its share capital after issuing 31,282 new ordinary shares during May 2026 under existing block admissions linked to its employee share schemes. These shares are fungible with its existing stock on...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.