Metro Bank has returned to profitability after aggressive cost-cutting measures, including a 30% workforce reduction and the sale of mortgage assets.

The UK lender, which secured a £925 million bailout in 2023, reported an underlying pre-tax profit of £12.8 million for the second half of the year, recovering from a £26.8 million loss in the same period the year before. However, its statutory pre-tax loss for 2024 stood at £212 million.

The bank exceeded its initial cost-cutting target, eliminating over 1,400 jobs and achieving £80 million in annualised savings. It also offloaded £2.5 billion in residential mortgages to NatWest and recently agreed to sell £584 million in personal loans to an undisclosed buyer.

Despite restructuring gains, Metro Bank faces ongoing challenges. Loan arrears rose to 5.6%, up from 2.8% the previous year, due to economic pressures such as declining property values and higher borrowing costs. The bank is now focusing on higher-margin lending in corporate, commercial, and SME sectors and specialist mortgages.

Grosvenor Leasing has rebranded and adjusted its strategy to address evolving business fleet needs, focusing on sustainability, flexibility, and technology-driven solutions. The company’s research highlights a growing demand for digital fleet management tools and a preference for maintaining personal customer service alongside automation.

Key industry trends include increased fleet management outsourcing as dedicated fleet roles decline, rising complexity due to ESG and compliance requirements, and changing work patterns influencing travel habits. Younger, tech-savvy drivers prioritise zero-emission transport and expect app-based mobility solutions.

Grosvenor is expanding its services beyond traditional vehicle leasing to include mobility solutions such as car sharing, e-bikes, scooters, and last-mile delivery options. The company also enhances its digital systems to improve automation and service integration while maintaining direct customer engagement.

Shirebrook-based Frasers Group has formed a strategic retail partnership with GMG, a global retailer, distributor and manufacturer of international and home-grown brands across sport, lifestyle, health and beauty and more, as it continues its international growth plans.

GMG has a strong presence in the Gulf, North Africa and Southeast Asia, where it’s a key distributor and operator of Nike stores as well as its home-grown multi-brand sports retailer, Sun & Sand Sports, among others.

The new partnership will facilitate Frasers Group’s expansion in the Gulf and Egypt, with its retail expansion plan, targeting 50 new Sports Direct store openings across the Gulf and Egypt over the next five years. The first year of the partnership will see the introduction of five new stores in the region.

Michael Murray, CEO of Frasers Group, said: “GMG is an unrivalled retailer in the region, operating and distributing an incredible portfolio of global brands in markets where we see real growth potential, particularly in sports and lifestyle.

“By leveraging GMG’s scale, deep retail expertise and market knowledge, our partnership will support the growth of our Sports Direct brand in the Gulf and in Egypt.”

Mohammad A. Baker, Deputy Chairman and CEO of GMG, said: “Our collaboration with Frasers Group represents not just a key milestone but a strategic expansion that underscores our commitment to redefine the sports arena across all markets in which we operate in.

“By introducing Sports Direct, a flagship brand in the industry, we are further positioning ourselves as a dominant force within the retail sports industry. At GMG, with over four decades of experience, we are committed to use our expertise in providing the best choices for quality products.

“We are uniquely positioned to integrate and scale Sports Direct’s presence successfully, bringing it closer to our consumers and crafting unparalleled sports retail experiences”

Business confidence in the East Midlands fell two points during February to 37%, according to the latest Business Barometer from Lloyds. While companies in the East Midlands reported greater optimism in the economy, up five points to 30%, their confidence in their own business prospects fell 10 points month-on-month to 43%. Taken together, this gives a headline confidence reading of 37% (vs. 39% in January). Looking ahead to the next six months, East Midlands businesses identified their top target areas for growth as investing in their team, for example through training and development (43%), evolving their offering, for example by introducing new products and services (34%), and investing in sustainability (32%). A net balance of 35% of businesses in the region also expect to increase staff levels over the next year, up five points on last month. The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. National picture Overall, UK business confidence rose 12 points in February to 49% — its highest level since August 2024. Firms’ optimism in their own trading prospects increased six points to 57%, while their confidence in the wider economy rose 18 points to 42%. The North East was the most confident UK nation or region in February (69%), followed by the North West and East of England, both at 61%. Sector insights All four sectors surveyed saw double-digit increases in confidence. The largest improvements were seen in manufacturing, which rose by 13 points to 51%, and construction, which increased by 14 points to 50%. Retail also experienced a significant gain, up 11 points to 51%, and services rose by 10 points to 48%. Within the services sector, hospitality firms posted a particularly strong rebound in sentiment. Confidence across these sectors reached their highest levels in several months, ranging from four months in services to seven months in manufacturing. Dave Atkinson, regional director for the East Midlands at Lloyds, said: “Despite a slight dip in business confidence, it’s positive to see the region’s firms still setting out clear plans for growth, with investment in their people, service and product innovation, and sustainability at the fore. “We’ll continue to provide our tailored, on-the-ground support to help local firms on their growth journeys.”