metro bank

Metro Bank to focus on specialist mortgages after £130m pre-tax loss

Metro Bank has revealed plans to rebalance its lending mix towards specialist mortgages following a statutory pre-tax loss of £130.8m in 2019.

The challenger bank’s full year results also included an underlying pre-tax loss of £11.7m, a 21% rise in retail and SME core deposits — which now totals £10.2bn — and an increase of 43% in net fee and other income.

Metro Bank will be seeking a better yielding asset book and improved returns on regulatory capital by rebalancing its lending mix towards areas such as specialist mortgages, SMEs and unsecured loans. 

Dan Frumkin, chief executive officer at Metro Bank, stated that its financial performance reflected a “very challenging year”.

“External headwinds, internal challenges and actions we took to put the business on a more positive trajectory are reflected in the results.

“Despite this, Metro Bank’s market-leading service proposition continued to deliver growth in customer accounts, and our balance sheet ended the year in a materially stronger position.

“We’ve fully evaluated our strategy and have a clear plan which will return the bank to sustainable growth built around a community banking model.”

Dan added that an “enhanced focus on costs, improved productivity and investment” in its infrastructure would enable its deposit-led franchise to deliver “profitable growth over the medium term”.

“Thanks to the steadfast commitment of colleagues across the bank, I am confident we will successfully execute against these priorities to become the UK’s best community bank.” 

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