The UK bank that’s still opening high street branches
Key Points
- Metro Bank signed leases for three new high street stores in Leeds, Newcastle and Nottingham in the first half of 2026, adding to its 78-store UK network.
- The bank pays the lowest cost of deposits of any UK high street bank at 0.98%, meaning savers earn less there than at comparable rivals.
- More than 35,000 personal current accounts and 12,000 business current accounts were opened over the six months.
- Specialist mortgage lending grew 73% and commercial lending 30%, while the bank's standard residential mortgage book shrank 32%.
- Metro Bank posted underlying profit before tax of £60.60 million, the most profitable half in its history.
Metro Bank signed leases for three new high street stores in Leeds, Newcastle and Nottingham during the first half of 2026, at a time when most UK lenders are shrinking their branch networks.
The London-listed bank set out the expansion in its half-year results, published on Tuesday (4 August) and covering the six months to 30 June 2026.
It currently operates 78 stores across the UK, alongside telephone banking from UK-based contact centres and its mobile and online services. Metro Bank said it continues to look for further locations to support its corporate, commercial and SME banking business.
“Our relationship banking model is delivering a clear competitive advantage. We continue to invest in growth, signing three new store leases to bring Metro Bank to new communities, and adding new products and services in response to customer demand,” said Daniel Frumkin, Chief Executive Officer at Metro Bank.
Customers opened more than 35,000 new personal current accounts and more than 12,000 new business current accounts with the bank over the six months. Current accounts now make up 43% of its deposit book.
What savers get in return
Metro Bank confirmed it holds the lowest cost of deposits of any UK high street bank, at 0.98% for the half.
That figure represents the average rate the bank pays out across its current accounts, savings accounts and fixed-term products, so a lower number means savers collectively earn less on the money they hold there than at any comparable high street rival.
Total customer deposits fell slightly over the year to £13.22 billion, from £13.36 billion a year earlier.
The bank said it is actively managing down higher-cost deposits from customers who hold no wider relationship with it. Fixed-term savings balances dropped 8% year-on-year to £634 million, and demand savings balances fell 2% to £6.87 billion.
Who Metro Bank now lends to
The bank’s lending mix has shifted sharply towards business customers and complex mortgage cases.
Specialist mortgage lending rose 73% year-on-year to £2.16 billion, while commercial lending to corporates, SMEs and larger businesses grew 30% to £4.02 billion. Metro Bank said its underwriting model suits more complex cases, which allows it to serve borrowers other lenders turn down.
Standard residential mortgages are heading the other way. The bank’s prime mortgage book, which it no longer writes new business into, shrank 32% over the year to £2.67 billion. Consumer lending fell 47% to £71 million, and government-backed pandemic-era loans dropped 45% to £281 million.
Arrears across the loan book improved to 3.9%, down from 4.9% a year earlier, and non-performing loans fell to 4.39% from 5.42%.
Metro Bank reported underlying profit before tax of £60.60 million for the half, its highest on record and 34% up on the same period last year.
Statutory profit after tax reached £49.00 million, against £30.40 million a year earlier
