Metro Bank, the high street lender, has reaffirmed all its guidance, including a target return on tangible equity (RoTE) of more than 13% in the final quarter of 2026.
RoTE, a key measure of bank profitability, is expected to exceed 15% in 2027 and 18% in 2028.
The bank sees a clear path to further gains in margins and returns through the fourth quarter and next year.
This will be driven by maturing fixed-rate treasury assets, which can be reinvested at higher rates, and a continued shift in its loan book.
Its net interest margin, the gap between what it earns on loans and pays on deposits, rose 42 basis points year-on-year to 3.45% at the end of September.
That is already within its full-year guidance range.
Lending to its target segments of corporate, commercial and small business customers and specialist mortgages jumped 37% year-on-year to £6.62 billion.
It rose 7% on the previous quarter.
At the same time, run-off books, older loans the bank is no longer actively writing, shrank 32% to £2.81 billion, freeing up capital for new lending.
Gross loans grew 5% to £9.43 billion.
Credit quality remained strong, with low arrears and a loan book mostly backed by property.
The allowance for bad loans fell 23% to £131 million.
Customer deposits slipped 1% to £13.03 billion, as growth in current account balances was offset by the bank letting go of expensive deposits from customers without a wider relationship.
Metro Bank says it has the lowest cost of deposits of any UK high street bank.
Its net loan-to-deposit ratio rose to 71% from 67%, leaving plenty of room to keep growing its lending.
Chief executive Daniel Frumkin said the bank was entering the final quarter "with confidence and clear momentum".
