26th Feb 2019 17:56
LONDON (Alliance News) - Metro Bank PLC late Tuesday reported more than doubled annual pretax profit on the back of a strong revenue increase.
For 2018, the FTSE 250 challenger bank posted pretax profit of GBP40.6 million, up from GBP18.7 million.
On an adjusted basis, Metro's pretax profit came in line with the bank's previous expectations at GBP50 million, up from GBP20.8 million the year before, but below consensus forecast of GBP59 million.
Revenue meanwhile increased 38% to GBP404.1 million from GBP293.8 million.
Net interest income amounted to 330.1 million, up from GBP241.0 million a year ago. Net interest margin fell by 12 basis points in the year to 1.81% from 1.93% a year prior.
Deposits from customers rose 34% to GBP15.66 billion from GBP11.66 billion, while loans rose to GBP14.24 billion from GBP9.62 billion.
The bank's common equity tier one ratio fell to 13.1% from 15.3% in 2016.
"These are a strong set of results demonstrating progress across all key areas despite an uncertain and challenging environment," Chief Executive Officer Craig Donaldson said.
He added: "While our strategy is delivering, we need to evolve to ensure continued progress over the medium term."
Looking ahead, Metro said it remains its intention to target a minimum CET1 ratio of 12%.
The company did not propose a dividend, in line with previous years.
Metro shares closed down 16% at 1,300.00 pence each.
Earlier on Tuesday, in a surprise update, the company said it entered a standby underwrite agreement with RBC Capital Markets, Jefferies Group LLC and KBW Inc to raise GBP350 million in equity.
The equity raise is expected to take place in the first half of 2019.
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