24th Jul 2018 18:39
LONDON (Alliance News) - Metro Bank PLC on Tuesday reported an increase in first-half profit and revenue and said it intends to raise GBP302.7 million via a non-pre-emptive cash placing.
Metro Bank's underlying pretax profit for the six months ended June multiplied to GBP24.1 million from GBP6.0 million the year before. The bank's total revenue increased 45% to GBP189.8 million from GBP131.1 million in the same period the previous year.
The retail bank reported record lending growth of GBP2.39 billion to GBP12.0 billion from GBP7.75 billion, a 55% increase. The company's assets increased 46% to GBP19.13 billion from GBP13.09 billion.
Metro Bank also increased its deposits by 40% to GBP13.73 billion from GBP9.80 billion.
Chief Executive Officer Craig Donaldson said: "Almost eight years to the day we opened the doors to our first store and I'm delighted with the momentum demonstrated by the performance in the first half of 2018."
In a separate announcement, the retail bank said it intends to conduct a non-pre-emptive cash placing of up to about 8.9 million new shares, which represents about 10% of the company, at a price of 3,422.00 pence each, raising GBP302.9 million.
Shares in Metro Bank closed Tuesday up 2.1% at 3,422.00p each.
RBC Capital Markets, Jefferies International Ltd and Keefe, Bruyette & Woods are acting as joint bookrunners for the placing.
According to Metro Bank, the proceeds of the placing will be used to support the bank's growth and replace liquidity used in connection with the GBP523 million acquisition of a portfolio of UK mortgages from CERH RSMC Sub BV and Capital Homes Ltd.
Related Shares:
Metro Bank