Celebrate profit

Metro Bank posts maiden quarterly pre-tax profit




Metro Bank has announced it has made an underlying profit before tax of £0.6m.

It is the challenger bank’s first underlying profit since launching in 2010 and a 118% improvement on Q2’s figures where it reported a £3.4m loss. 

Metro Bank, however, did reveal it made a statutory loss after tax during Q3 of £0.4m.

This is an improvement on the £5.9m statutory loss made in Q2. 

The bank’s underlying profit was mainly thanks to a 66% increase in deposits with the figure now at £7.3bn, despite the cost of deposits reducing from 87 to 80 basis points.

Meanwhile, lending grew 73% to £5.2bn and revenue was up 78% to £53.4m. 

Craig Donaldson, CEO of Metro Bank, said he was delighted to announce the results and said it continued to show strong deposit growth even as the cost of its deposits fell.
“This clearly demonstrates that our offering of high-impact, convenient high street stores, UK-based contact centres and easy-to-use online and mobile services is persuasive for retail, business and private customers.

"We continue to expand the business to generate long-term, sustainable growth, with revenue up 78% year-on-year and an underlying quarterly profit before tax for the first time of £0.6m. 

“As we move into underlying profit, our customer-focused culture and commitment to providing a superior banking experience remain at the very forefront of our offering, and we look forward to welcoming even more retail, business and private banking customers to the banking revolution."

Metro Bank reported a 12% increase on commercial loans compared with Q2 with total lending up to £1.8bn, while residential mortgages were also up 12% to £3.2bn. 

Q3 also saw Metro Bank gain a record quarterly net increase in customer accounts as it grew from 780,000 to 848,000. 

Vernon Hill, chairman and founder of Metro Bank, concluded: “Metro Bank is the revolution in British banking and, as we go from strength to strength, we continue to create 'fans not customers'. 

“Our relentless focus on customer service and convenience has helped us to achieve so much in such a short period of time. 

“Our thanks, as ever, must go to our colleagues, our investors and our fans, who continue to show their support."

Leave a comment