Metro Bank has put itself up for sale, in the wake of a major financial turnaround that has seen it return to profit and growth, according to the Financial Times.

The publication reported that the challenger bank has started a formal sale process, adding that it has appointed Morgan Stanley to oversee the sale process, with potential buyers invited to submit expressions of interest.

Metro Bank told the FT that it is not yet in active discussions with any interested parties.

In a statement, Metro Bank said: “The significant progress made by Metro Bank means it is now well-positioned to consider a broader range of strategic opportunities for its next phase of growth.

“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 has undergone a major financial overhaul in the last three years, having struggled with profitability in 2023. That year, it slashed its workforce by 20 per cent and secured a £925 million rescue deal from investors to stay afloat.

In 2024, Metro Bank sold its £2.4 billion residential mortgage portfolio to NatWest to shore up its balance sheet and Sky News reported in June 2025 that the private equity firm Pollen Street Capital had expressed interest in a takeover bid for Metro Bank.

In August, Metro Bank announced the most financially successful half year in its history, with statutory profit before tax of £60.7 million.

Its third quarter results, published last week, reaffirmed the bank’s continued success. Growth in comprising corporate, commercial SME lending and specialist mortgages, all of which Metro Bank defines as “target lending segments”, were up 37% year-on-year.

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