24th Oct 2018 08:25
LONDON (Alliance News) - Midcap lender Metro Bank PLC on Wednesday reported an increase in profit for the first nine months of the year on "strong" deposit growth and record lending growth.
Metro Bank's statutory pretax profit for the nine months ended September multiplied to GBP34.4 million from GBP11.1 million the year before.
The retail bank's total revenue increased 41% to GBP294.8 million from GBP209.2 million in the same period the previous year.
Metro Bank's underlying pretax profit in the third quarter increased 7% to GBP15.1 million from the previous quarter.
The bank reported lending growth of 52% in the first nine months to GBP13.12 billion from GBP8.61 billion, with commercial loans up 43% to GBP4.17 billion and residential mortgages up 59% to GBP8.72 billion.
Metro Bank also increased its total deposits by 38% to GBP14.81 billion from GBP10.76 billion. Deposits from retail customers increased 32% to GBP6.77 billion and corporate deposits increasing 42% to GBP8.05 billion.
The challenger bank increased its number of accounts to 1.5 million, a 7.1% increase from the year before.
The company's assets increased 32% year-to-date to GBP20.57 billion from GBP14.57 billion.
The bank's common equity tier one ratio was 15.7% at the end of the quarter.
The bank said its "remains intensely focused" on its 2020 targets and the long term growth of the business.
Chief Executive Officer Craig Donaldson said: "Our integrated, frictionless model - stores, online, mobile and phone - combined with superior service is a winning formula for our customers. We have continued to invest in our mobile services and have harnessed the power of artificial intelligence with the launch of our new Insights tool.
"Our commitment to service remains as strong as ever and it was fantastic to have that validated by the inaugural CMA survey in August. We were second for overall service quality in both personal and business banking, and the only provider to be ranked top five for qualifying business and personal services."
Shares in Metro Bank were down 6.5% Wednesday morning at 2,406.00 pence each.
Related Shares:
Metro Bank