Metro Bank has reported “record lending” with a 73% year-on-year increase in specialist mortgages to reach £2.2bn in the first half of 2026.

Prime mortgage lending reduced by 32% to £2.7bn, as the bank is winding down this part of its proposition to focus on niche areas, which include commercial and SME finance alongside specialist mortgages.

Overall, it says balances in its target lending segments grew by 43% year-on-year to £6.2bn.

Pre-tax profits were £61m, up 41% from £43m in the first half of last year, Metro reports.

Metro chief executive Daniel Frumkin says: “The first half of the year has been another period of strong momentum and strategic delivery for Metro Bank.

“Our continued progress reflects a business executing with discipline across revenue growth, cost management and improving returns.

“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.

“Alongside the lowest cost of deposits of any UK high street bank, our growing mix of higher-yielding corporate, commercial and specialist mortgage lending is driving stronger risk-adjusted returns.

“As we move into the next half of the year, our record-high credit approved pipeline gives us a strong platform for further targeted lending.”