Metro Bank reports 33% rise in Q1 underlying profits to £2m and ‘record’ deposit growth of more than £1bn

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Date: 03.03.2018

Metro Bank has reported a 33 per cent hike in first quarter underlying profits on “record” deposit growth – exceeding £1bn for the first time.

The challenger bank said it added a “record” 72,000 customer accounts in Q1, taking the total to 987,000.

Underlying profit rose to £2m in Q1, up from £1.5m in Q4 and against a loss of £9.6m in Q1 of 2016.

Deposits were up £1.1bn in Q1 to £9.01bn, and and up 58 per cent on the £5.89bn reported in Q1 of 2016.

Revenues were up seven per cent on Q4 at £61.9m and revenues were up 64 per cent on the £37.7m reported in Q1 of 2016.

Metro Bank said lending rose 11 per cent quarter on quarter to £6.48bn and lending was up 57 per cent year-on-year.

Net interest margin rose to 2.02 per cent in Q1, up from 1.96 per cent last year though down a nudge on the 2.03 per cent reported in Q4.

Craig Donaldson, chief executive of Metro Bank, said: “This is another great quarter for Metro Bank, and the results are a testament to the strength of the model and our focus on the integration of stores and technology to create FANS.

“We have now delivered three consecutive quarters of profitability and for the first time have exceeded £1 billion net growth in deposits in a single quarter whilst also reducing the cost of those deposits.

“We have seen double digit growth in lending (11 per cent) and attracted an additional 72,000 accounts, taking us to 987,000 customer accounts across the bank.

"We continue to grow the business, and remain on track to open a further ten stores before the year end.

“Our business continues to deliver across all areas - Retail, Business, Commercial and Private - and our model, culture and focus on creating FANS remains a compelling alternative for consumers and businesses alike.”

https://www.insider.co.uk/news/metro-banks-reports-33-rise-10296710

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