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Metro Bank swings to interim profit as interest rates rise

1st Aug 2023 13:59

(Alliance News) - Metro Bank Holdings PLC on Tuesday reported a swing to half-year profit, boosted by rising rates, but said it is "watchful" of tricky economic conditions.

The high street said lender said total income in the first-half of the year surged 21% to GBP286.4 million from GBP236.5 million a year ago. It reported a pretax profit of GBP15.4 million, swinging from a loss of GBP60.2 million.

Boosted by higher interest rates, Metro Bank's net interest margin rose to 2.14% from 1.73% a year prior and 2.11% from the half-year to December 31.

Chief Executive Officer Daniel Frumkin said: "I am encouraged by the activity across the business. Our statutory profitability in H1, making this the third consecutive quarter of underlying profitability, demonstrates that our strategy is working. We continue to win new customers every day through our service-led franchise, at the same time as showing ongoing cost discipline and pursuing our targeted store expansion. Whilst we remain watchful of macro-economic headwinds, we have the expertise, capability and infrastructure in place to unlock our future growth potential."

Earlier in 2023, the company established Metro Bank Holdings as its new non-operating holding company, meeting a Bank of England requirement for a "clean holding company". That move came into effect in May.

Metro Bank shares fell 1.7% to 116.20 pence each in London on Tuesday afternoon.

By Eric Cunha, Alliance News news editor

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