Metro Bank has committed to a further £30 million in cost savings by the end of the year.

The pledge follows previously announced annualised cost savings of £50 million which will see 1,000 employees – representing 22 per cent of the bank's headcount – leaving before mid-April.

The commitment comes as Metro returns to profitability for the first time since 2018.

The bank also recorded a 67 per cent year-on-year reduction in underlying losses for the year ended 31 December.

In October 2023 Metro secured a rescue deal with investors following a volatile week of trading for the UK challenger bank.

The package included a £325 million capital raise, made up of £150 million of fresh equity from Metro's largest shareholders and £175 million of new debt from bondholders.

The announcement also included £600 million of debt refinancing, which the bank said would enhance its balance sheet strength and accelerate earnings potential.

Commenting on Metro's latest financial results, chief executive Daniel Frumkin said the bank was pleased to return to profit and deliver its "best half-year results for several years".

"After addressing our capital position in the fourth quarter, we also launched a successful deposit campaign, with deposits as at the end of February 2024 at the highest level in three years," he continued. “During the year we also launched a cost saving plan which included reducing store hours and roles across the organisation.

"These efforts will ensure the bank is right-sized for the future, with a strong focus on both digital and great customer service.”

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