25th Apr 2018 09:00
LONDON (Alliance News) - Shares in Metro Bank PLC slid on Wednesday as the company said its net interest margin continues to deteriorate despite rising revenue and profit.
Metro Bank shares were trading at 3,208.00 pence each Wednesday morning, down 8.8%.
The net interest margin at the end of March was 1.85%, down from 1.87% at the end of 2017, and it has fallen from 2.02% since the end of March 2017.
On a statutory basis, pretax profit soared to GBP8.6 million for the first quarter of 2018 compared to GBP1.6 million the same period a year earlier. It was up 14% on the last quarter of 2017. Metro Bank's underlying pretax profit was up 21% quarter-on-quarter to GBP10.0 million and by fivefold from the GBP2.0 million recorded a year earlier.
Revenue for the quarter was GBP91.8 million, up 9% quarter-on-quarter and 48% year-on-year.
Metro Bank assets rose 9% quarter-on-quarter to GBP17.89 billion, with loans rising 14% on the prior quarter to GBP10.97 billion. Deposits were up 9% to GBP12.70 billion and its loan to deposit ratio stood at 86% at the end of March compared to 82% at the close of 2017.
Metro Bank's common equity tier 1 ratio stood at 13.6% at the end of March, a "robust" figure.
Chairman & Founder Vernon Hill said: "For its FANS and colleagues Metro Bank is the bank that keeps on giving. As well as strong deposit and lending growth, we've opened 88,000 new accounts in the last quarter alone, taking the number of accounts held with us to 1.3 million."
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