Slides
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Strong performance: Strategy in action H1 2026 Results Presentation 4 August 2026
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Agenda Overview Daniel Frumkin, Chief Executive Officer Financial performance Marc Page, Chief Financial Officer Strategy driving the future Daniel Frumkin, Chief Executive Officer Q&A Daniel Frumkin, Chief Executive Officer Marc Page, Chief Financial Officer
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3 Strong performance through strategic execution All profitability metrics improved year-on-year 7.5% RoTE ▲ 270bps1 YoY Continued record growth in Corporate & Commercial lending £61m Underlying profit ▲ 34% YoY 3.25% Exit NIM ▲ 30bps YoY 77% Cost to Income ratio ▼ 5 ppts YoY Relationship network generating significant deal flow3Revenue-led growth with continued cost discipline Revenue2 29% Costs2 9% 109% CIR 77% CIR H1 24 H2 24 H1 25 H2 25 H1 26 £0.5bn £0.7bn £1.0bn £1.0bn £1.0bn £0.6bn £0.6bn £0.8bn £0.8bn £1.0bn H1 24 H2 24 H1 25 H2 25 H1 26 New originations Credit approved pipeline £4bn £5bn £6bn H1 25 H2 25 H1 26 • 73% of all deal flow direct through RMs • 95% of Corporate lending direct through RMs • Selective lending decisions focussed on maximising risk adjusted returns 3 Total deal flow across Corporate, Commercial and SME lending 2 Growth rates for Revenue and Costs quoted vs H1 24 1 RoTE pro-forma to adjust for impact of AT1 securities raised April 2025, to allow like-for-like comparison Reported H1 2025 RoTE: 7.3%
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4 H1 2026 Treasury maturities Asset rotation Other Q4 2026 Treasury maturities Asset rotation Rates Other FY 2027 FY 2028 On track for RoTE >13% in Q4 2026, with clear path to >18% RoTE in 2028 Mechanical 2.7% RoTE uplift Further 1.5% RoTE uplift H1 2026 7.5% Q4 2026 >13% FY 2027 >15% >18% RoTE in 2028 from mechanical uplifts and continued strategic execution FY 2028 >18% MREL call April 2028 provides ~4% annualised RoTE uplift Continued asset rotation more than offsets rate headwinds Other (incl. deposits & cost) c.9.2% mechanical RoTE uplift from maturity of fixed-rate treasury assets, annualisation of H1 2026 lending and call of MREL debt Continued active asset rotation to higher-yielding lending drives further upside Other (incl. deposits & cost) RoTE uplifts quoted based on a static June 2026 tangible equity 1.2% benefit from lending already originated in H1
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5 Reaffirming all guidance, building to RoTE >18% in 2028 Exit NIMs Cost to income ratio RoTE 2026 3.40% - 4.00% 75% - 70% >13% in Q4 2026 2027 3.75% - 4.50% 65% - 60% >15% 2028 55% - 50% >18% Guidance statements are predicated on modelling assumptions including interest rate curves, capital requirements, and adjustments for material exceptional items Clear path to >18% RoTE in 2028
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Financial Performance Marc Page Chief Financial Officer
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7 Trading momentum drives continued growth in profit Increased lending yield Improved exit NIM Increased revenue2 (£m) Increased underlying PBT (£m) Lowered cost to income ratio2 Increased RoTE Maintained cost of deposits Increased statutory PBT (£m) 5.67% 5.71% 5.78% H1 25 H2 25 H1 26 1.16% 0.96% 0.98% H1 25 H2 25 H1 26 2.95% 3.17% 3.25% H1 25 H2 25 H1 26 286 299 301 H1 25 H2 25 H1 26 82% 80% 77% H1 25 H2 25 H1 26 45 53 61 H1 25 H2 25 H1 26 4.8% 5.4% 7.5% H1 25 H2 25 H1 26 43 44 61 H1 25 H2 25 H1 26 2.5% [1] Exit metrics quoted at June 2026- may differ from average metrics for the half [2] Quoted on an underlying basis [3] RoTE pro-forma to adjust for impact of AT1 securities raised April 2025, to allow like-for-like comparison. Reported H1 2025 RoTE: 7.3% 3 1
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8 Lending income 260 251 4% Treasury income 106 113 (6)% Deposit expense (64) (79) 19% Debt capital and other expense (60) (62) 3% Net interest income 242 223 8% Net fees and other income 55 63 (13%) Net gains/(losses) on sale of assets 4 (0) >100% Total underlying revenue 301 286 5% Underlying operating costs (231) (235) 2% Expected credit loss expense (10) (6) (56%) Underlying profit / (loss) before tax 61 45 34% Non-underlying items 0 (2) >100% Statutory profit / (loss) before tax 61 43 41% Statutory taxation (12) (13) 8% Statutory profit / (loss) after tax 49 30 61% Consistent execution grows underlying PBT 34% year-on-year 34% £m H1 2026 H1 2025 YoY • 8% increase in NII reflecting continued transition to higher- yielding assets and managed cost of deposit reductions • Fee income down given increased competition, particularly FX • Continued cost control and prudent risk management reflected in Opex and ECL 10 13 5 4 (16) H1 25 Asset rotation Treasury Cost reductions Deposits Rates and other H1 26 45 61
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Repricing of treasury assets Active asset rotation Structural growth drivers Strong cost discipline Relationship deposits franchise
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10 Increased core business lines by 43% year-on-year Continued strategic asset rotation with record growth in Corporate and Commercial Lending balances1 £bn H1 26 H1 25 YoY H2 25 HoH Commercial 4.0 3.1 30% 3.6 13% Specialist mortgages 2.2 1.2 73% 1.7 30% Core business lines 6.2 4.3 43% 5.2 18% Government backed 0.3 0.5 (45%) 0.4 (24%) Consumer 0.1 0.1 (47%) 0.1 (38%) Prime mortgages 2.7 3.9 (32%) 3.3 (19%) Run-off books 3.0 4.6 (34%) 3.8 (20%) Total 9.2 8.9 4% 9.0 2% • Core business lines now represent 67% of total lending book; actively managing attrition in lower-yielding run-off books • Asset quality remains strong with resilient credit performance across all portfolios • Rotation leading to increased risk-adjusted lending yield and improved return on RWAs Commercial lending now 44% of total lending book Cost of risk remains low reflecting benign credit environment 24% 34% 45% 76% 66% 55% H1 25 H2 25 H1 26 “Specialist” >200bps over swaps “Current market Prime” ~40-70bps over swaps 45% of total Mortgage book now specialist in nature Through-the-cycle guidance of 40-60bps 35% 40% 44% 65% 60% 56% H1 25 H2 25 H1 26 Commercial Other lending classes [1] Gross balances (before ECL). Figures in table may not cast due to rounding- presented in billions 6 8 10 0.14% 0.18% 0.22% - 5 10 15 20 25 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% H1 25 H2 25 H1 26 Expected credit loss expense CoR
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11 141 41 95 - 271 200 - 267 - 50 100 150 200 250 300 Q1 26 Q2 26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 £24m annualised revenue benefit from H2 2026 maturities Scaling structural hedge to maintain interest rate neutrality Treasury asset repricing in H2 2026 presents revenue tailwinds Table shows sensitivity arising from the regulatory scenario of a +200bps and -200bps parallel interest rate shock for a one-year forecasting period upon projected net interest income, based on static balance sheet with rate changes passed on in full and assuming no specific product floors. See Table 26 of 2025 ARA £m H2 2026 H1 2027 H2 2027 Balance maturing 833 23 508 Average rate on maturing balances 0.85% 2.26% 1.21% Cumulative annualised Revenue uplift 24 24 37 Cumulative annualised RoTE uplift 2.7% 2.7% 4.2% Cumulative annualised NIM uplift 0.15% 0.15% 0.24% ■ Balance maturing, £m NII sensitivity, £m 200bps increase 200bps decrease As at 30 June 2026 (6.0) 5.1 As at 31 December 2025 (4.0) 3.1 • Strategic pivot to Commercial lending sees the loan book become more floating-rate in nature • Structural hedging programme established to maintain interest rate neutrality target • As at 30 June 2026 structural hedge notional is £2.6bn (June 2025: £0) • Average duration of 3.1 years • Weighted average yield of 3.4% • Higher-for-longer rates remain a positive for Metro Bank given rotation to floating-rate lending and treasury maturities. On a static balance sheet the bank is broadly rate-neutral Assuming reinvestment at current base rate of 3.75%. RoTE and NIM uplifts quoted based on a static June 2026 tangible equity and net earning assets
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12 43% 44% 43% 52% 51% 52% 5% 5% 5% 1.16% 0.96% 0.98% - 2,00 0 4,00 0 6,00 0 8,00 0 10,0 00 12,0 00 14,0 00 16,0 00 0% 20% 40% 60% 80% 100 % 120 % H1 25 H2 25 H1 26 Current accounts Variable Fixed & ISA 18% 48% 34% Market peers • Relationship-led model grows current accounts, helping keep cost of funds low • Metro Bank continues to have the lowest cost of deposits of any UK High Street Bank Current accounts more than double the market average Growing share of deposits from SMEs, in line with strategy Relationship-led strategy continues to provide strategic funding advantage CoD Retail Partnerships SME and Commercial • Increased share of deposits from SMEs and Commercial • LCR of 270% and LTD of 69%, providing further capacity for growth [1] BoE Bank stats publicly available data as at May 2026 1 H1 25 £13.4bn H1 26 £13.2bn 37% 14% 48% 35% 12% 53%
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13 • Strong cost discipline expected to deliver costs in line with guidance • Costs in 2026 will be broadly flat versus 2025 • Cost income ratio of 77% at H1 2026 (2026 full year guidance: 75– 70%) • Future revenue growth primary driver of future improvements in cost to income ratio Costs down 2% year-on-year, 2026 broadly flat to 2025 Continued improvements in cost to income ratio Cost discipline sustained in line with guidance £530m £510m £473m 100 96 93 113 125 122 22 17 16 235 238 231 - 50 100 150 200 250 300 H1 25 H2 25 H1 26 People costs Non-people costs Other (incl. Fraud) 82% 80% 77% H1 25 H2 25 H1 26
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14 Confidently reaffirming all guidance, building to RoTE >18% in 2028 Exit NIMs Cost to income ratio RoTE H1 2026 3.40% - 4.00% 75% - 70% >13% in Q4 2026 2027 3.75% - 4.50% 65% - 60% >15% 2028 55% - 50% >18% Guidance statements are predicated on modelling assumptions including interest rate curves, capital requirements, and adjustments for material exceptional items >13% RoTE in Q4 2026, with a clear path to >15% RoTE in 2027 and >18% RoTE in 2028 2026 3.25% 77% 7.5%
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Strategy driving the future Daniel Frumkin Chief Executive Officer
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16 Of all new lending extended to SMEs1 in the UK over the past 12 months: Corporate, Commercial and SME lending key driver of future RoTE growth Regional hubs driving strong deal flow, enabling lending to customers we know from across the UK 3% £2bn All new lending independently underwritten by colleagues with average 20-25 years’ experience in their sectors For £6bn of deal flow seen across H1 2026: Deals written by Metro Bank in H1 Rejected: insufficient protection or other Rejected: insufficient risk adjusted returns In credit approved deal Pipeline Written by Metro Bank 15% £11bn Reviewed by Metro Bank 95% Of new Corporate lending direct through Relationship Managers 82% Of new lending in H1 came from outside Greater London 64% Of Commercial lending to customers we’ve known for more than 5 years Lending to established businesses Established 10-20 years with an average Turnover of £43m 1 Source: Bankstats total gross lending to SME Businesses
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17 A unique opportunity for future growth Investment in AI and Infrastructure have created an efficient, scalable platform Meaningful market opportunities across both SME and Retail Strategoc optionality from significant future capital build Agentic Prospecting Tool Allows RMs to have more relevant, targeted conversations with potential customers Client Health Checks Automating annual review process Auto-draft of Account Opening Forms Speeds up account opening times 3.5x Higher contact-to-meeting conversion vs control group 65% Auto-completion rate using new AI tool 6,000 Equivalent work hours saved annually Metro Bank Scam Checker the first British bank to partner with Ask Silver £3m Estimated customer fraud avoided Turnover £0-2m Turnover £2-20m Turnover £20-500m [1] Source: McKinsey value pools analysis £241 billion Estimated SME & Commercial Market Store expansion programme will provide access to new customers in SME-centric locations £54 billion Forecast addressable Specialist Mortgage market by 2029 [2] [2] Source: together Residential property market report 2024/25 Growth in RoTE delivers significant CET1 build, providing optionality going forwards: Capital returns Increased Commercial growth New markets, locations & products New geographies As we build out storesFunded by lowest Cost of Deposits of any UK High Street bank Disrupt specialist markets Funding advantage creates opportunity Digital builds To empower relationship banking
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18 Firmly on track to deliver >13% RoTE in Q4 2026, >15% in 2027 and >18% RoTE in 2028 Only bank offering dedicated relationship management to business of all sizes Resilient model, structurally advantaged to deliver leading risk-adjusted returns Local relationship-led service model Generating low-cost deposits Funding high-yield specialist lending Efficiently Lowest cost of deposits of any UK High Street bank Local relationship-led service model unrivalled by larger banks, breadth of services a key differentiator to challenger banks Strategic partnerships driving automation and scalability Specialist lenders High Street Banks Metro Bank Based on latest publicly available information H1 26 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 3.00% 4.00% 5.00% 6.00% 7.00% Cost of deposits Risk adjusted lending yield Target positioning
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Q&A Daniel Frumkin, Chief Executive Officer Marc Page, Chief Financial Officer
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Appendices
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21 Local relationship-led service model unrivalled by larger banks The only Bank to offer dedicated relationship management to business of all sizes Relationship-based model remains at the heart of why Metro Bank wins Longest opening hours of any bank on the UK High Street A sophisticated suite of lending and deposit products for SMEs Current accounts Cash management Foreign Exchange Business Loans Credit Cards and Overdrafts Revolving Credit Facilities Leveraged Finance Invoice Finance Asset Finance Dedicated capability for businesses of all sizes From micro-SME to large corporate Local Business Manager in every Metro Bank Store Breadth of services a key differentiator to challenger banks 78 Stores across England and Wales enable us to establish new customers and deepen existing relationships > 150 business network events held each year in Metro Bank Stores Specialist Mortgages Including Shared Ownership, HMO, FUFB, Ltd. Co BTL, Joint Borrower Sole Proprietor New FX Forwards services launched Available to all Corporate and Commercial clients Specialist deposit offerings Including Community Current Accounts, Foreign Currency, and Insolvency Practitioner
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22 Portfolio remains highly collateralised and prudently provisioned Capital stack provides significant capacity for further growth • Asset quality strong with resilient credit performance across all portfolios • 84% of loans secured on collateral, with average DTV of 64% • 12% of loans secured on Government guarantees or invoice/asset receivables 53% Mortgages secured on collateral with DTV of 62% 9% Asset and Invoice Finance 4% Consumer & Commercial other 3% Government backed incl. BBLs, CBILs and RLS 31% Commercial Term Loans secured on collateral with DTV of 67% H1 26 £9.2bn • Reclassified a transfer firm under MREL regime effective 1 January 2026 with MREL set equal to minimum capital requirements • Existing £525m MREL debt callable April 2028. Continue to review liability structure on an economic basis • LCR of 270% and LTD of 69% Significant capacity for disciplined RWA growth 12.3% 3.5% 2.1% 7.4% 9.2% 2.5% 2.0% 25.3% 13.7% Actual position at H1 26 Capital requirements CET1 AT1 T2 MREL MCR CCoB CCyB
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23 P&L £m H1 2026 H1 2025 YoY H2 2025 HoH Net interest income 241.5 222.9 8% 237.4 2% Net fees and other income 55.1 63.4 (13%) 61.4 (10%) Net gains/(losses) on sale of assets 4.4 (0.2) >100% 0.2 >100% Total underlying revenue 301.0 286.1 5% 299.0 1% Underlying operating costs (230.6) (234.7) 2% (238.0) 3% Expected credit loss expense (9.8) (6.3) (56%) (8.0) (23%) Underlying profit / (loss) before tax 60.6 45.1 34% 53.0 14% Non-underlying items 0.1 (2.0) >100% (8.9) >100% Statutory profit / (loss) before tax 60.7 43.1 41% 44.1 38% Statutory taxation (11.7) (12.7) 8% (4.8) >100% Statutory profit / (loss) after tax 49.0 30.4 61% 39.3 25% Earnings per share 4.7p 4.5p 0.2p 3.3p 1.4p Return on Tangible Equity 7.5% 7.3% 0.2pp 5.4% 2.1pp Net interest margin 3.18% 2.87% 31bps 3.10% 8bps Lending yield 5.78% 5.67% 11bps 5.71% 7bps Cost of deposits 0.98% 1.16% (18bps) 0.96% 2bps Underlying cost to income ratio 77% 82% (5pp) 80% (3pp) Cost of risk 0.22% 0.14% 8bps 0.18% 4bps
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24 Balance Sheet £m H1 2026 H1 2025 YoY H2 2025 HoH Loans and advances to customers 9,074 8,715 4% 8,823 3% Treasury assets 6,530 6,386 2% 6,345 3% Other assets 1,421 1,327 7% 1,307 9% Total assets 17,025 16,428 4% 16,475 3% Deposits from customers 13,216 13,363 (1%) 13,445 (2%) Deposits from central banks 400 400 0% 400 0% Debt securities 675 685 (1%) 684 (1%) Other liabilities 1,210 522 132% 462 162% Total liabilities 15,501 14,970 4% 14,991 3% Equity 1,524 1,458 5% 1,484 3% Total equity and liabilities 17,025 16,428 4% 16,475 3% Risk weighted assets 7,038 6,437 9% 6,711 5% Loan to deposit ratio 69% 65% 4pp 66% 3pp Book value per share 2.26 2.17 0.09 2.2 0.06 Tangible net asset value per share 1.66 1.61 0.05 1.63 0.03 Liquidity coverage ratio 270% 315% (45pp) 306% (36pp)
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25 H1 2026 £m Statutory basis Impair/WO's PPE/intangible assets Net C&I costs Transformation costs Remediation costs Underlying basis Net interest income 241.5 - - - - 241.5 Net fee and commission income 43.3 - - - - 43.3 Net gains on sale of assets 4.4 - - - - 4.4 Other income 13.2 - (1.4) - - 11.8 Total revenue 302.4 - (1.4) - - 301.0 General operating expenses (202.7) - 1.4 1.0 (0.3) (200.6) Depreciation and amortisation (30.0) - - - - (30.0) Impairment and write offs of property, plant & equipment and intangible assets 0.8 (0.8) - - - - Total operating expenses (231.9) (0.8) 1.4 1.0 (0.3) (230.6) Expected credit loss expense (9.8) - - - - (9.8) Profit before tax 60.7 (0.8) - 1.0 (0.3) 60.6 Statutory to Underlying reconciliation
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26 Alternative Performance Metrics Net interest margin (NIM) Cost of deposits (CoD) £m H1 2026 H1 2025 H2 2025 Interest on customer deposits 64.5 78.8 64.4 Average deposits from customer 13,276 13,686 13,292 Cost of deposits 0.98% 1.16% 0.96% Interest expense on customer deposits divided by the average deposits from customers for the year £m H1 2026 H1 2025 H2 2025 Net interest income 241.5 222.9 237.4 Average interest-earning assets 15,304 15,643 15,212 Net interest margin 3.18% 2.87% 3.10% Net interest income as a percentage of average interest-earning assets Underlying cost to income ratio (CIR) Coverage ratio £m H1 2026 H1 2025 H2 2025 Expected credit losses 134 167 170 Gross loans and advances to customers 9,208 8,882 8,993 Coverage ratio 1.46% 1.88% 1.89% Expected credit losses as a percentage of gross loans £m H1 2026 H1 2025 H2 2025 Total underlying operating expenses 230.6 234.7 238.0 Total underlying income 301.0 286.1 299.0 Underlying cost to income ratio 77% 82% 80% Underlying total operating expenses as a percentage of underlying total income Return on Tangible Equity (RoTE) Tangible Net Asset Value (TNAV) per share #m / £m H1 2026 H1 2025 H2 2025 Shares in issue 673 673 673 Total equity (excluding other equity instruments and intangible assets) 1,118 1,086 1,099 TNAV per share 1.66 1.61 1.63 Tangible net asset value (defined as total equity excluding other equity instruments and intangible assets) divided by the total number ordinary shares in issuance Statutory profit after tax attributable to shareholders (adjusted for material exceptional items) as a percentage of average tangible equity (equity excluding other equity instruments, intangible assets and deferred tax assets) £m H1 2026 H1 2025 H2 2025 Statutory PAT attributable to shareholders 31.7 30.4 22.0 Total equity (excluding other equity instruments, intangibles and deferred tax assets) 849 854 827 Return on Tangible Equity 8% 7% 5%
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27 An introduction to Metro Bank An award-winning UK bank Relationship banking specialists We are committed to building relationships with our customers and communities Our local relationship-led service model is a key differentiator from the larger banks Our breadth of Corporate and Commercial services is a key differentiator to challenger banks Our pivot to Corporate & Commercial lending and specialist mortgages is driving the bank forward with sustainable lending growth at higher risk adjusted yields We’re Metro Bank- an award-winning independent UK bank growing in Corporate and Commercial banking services and specialist mortgages When we opened in 2010- the first High Street bank to open in the UK in over 100 years – we were determined to do things differently We are growing our network of 78 stores across England and Wales, to drive brand awareness, lower funding costs and deepen connections with local businesses and communities A compelling investment case Metro Bank Holdings PLC is listed on the London Stock Exchange and a component member of the FTSE 250 We have a unique business model, a clear, repeatable strategy, and capacity for growth We will deliver >13% RoTE by Q4 2026, growing to >18% RoTE in 2028, one of the highest RoTEs of any UK High Street bank