Metro Bank has put itself up for sale as the high street lender explores potential takeover offers following a turnaround of the business in recent years.

The London-listed bank announced on Thursday that it had launched a formal sale process as part of a wider strategic review aimed at accelerating growth and maximising returns for shareholders.

Metro Bank has appointed Morgan Stanley to oversee the process and invited potential buyers to submit expressions of interest for the entire company.

However, the lender stressed that it was not currently in talks with any potential bidders and had received no takeover approaches.

The move comes after Metro Bank completed a major restructuring that helped it return to profitability following years of financial difficulties.

The move comes after Metro Bank reported its most profitable half-year on record in August, with pre-tax profits jumping 41 per cent to £60.7m in the six months to June.

The bank, which operates 78 branches across the UK, has undergone a major restructuring since 2023, shifting away from mainstream lending towards higher-margin commercial and specialist loans.

Its core target lending book, covering corporate, small business and specialist mortgages, grew 43 per cent year-on-year to £6.2bn in the first half.

“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,” the lender said.

The board added that exploring potential takeover interest alongside its existing strategy would “maximise the value creation opportunities available to shareholders”.

Metro Bank eyes next phase of growth

The potential sale follows a string of changes at the challenger bank, including the departure of chairman Robert Sharpe at the end of October after six years in the role.

Senior independent director Catherine Brown was appointed interim chair, subject to regulatory approval, while the bank began searching for a permanent replacement.

Metro Bank has also continued expanding its physical footprint despite a wider industry retreat from high street branches, signing leases for new sites in Newcastle, Leeds and Nottingham earlier this year.

The lender reaffirmed its profitability targets last week, forecasting a return on tangible equity of more than 13 per cent in the final quarter of 2026, rising to more than 15 per cent next year and 18 per cent in 2028.

The bank said its directors unanimously supported exploring a potential sale alongside continuing its existing growth strategy.

Under the formal sale process, interested buyers will be able to hold confidential discussions without being publicly identified or facing the usual 28-day deadline to make a firm offer.