Metro Bank

Metro Bank posts 59% rise in commercial loans

Metro Bank has reported a 59% surge in commercial lending following a quarter of record growth.

Gross loans and advances to customers as of 31st March 2017 stood at £6.5bn, of which over £2.2bn represented commercial loans, marking a 9% rise on the previous quarter and a marked improvement on the £1.4bn of commercial loans in Q1 2016.

This success was further boosted by record deposit growth in the quarter, where deposits grew by £1.1bn for the first time in Metro Bank’s history.

Craig Donaldson, chief executive officer at Metro Bank, said: "This is another great quarter for Metro Bank, and the results are a testament to the strength of the model and our focus on the integration of stores and technology to create fans.

“We have now delivered three consecutive quarters of profitability and for the first time have exceeded £1bn net growth in deposits in a single quarter, while also reducing the cost of those deposits.

“We have seen double digit growth in lending (11%) and attracted an additional 72,000 accounts, taking us to 987,000 customer accounts across the bank.” 

The challenger is also on track to open a further 10 stores before the year end.

Metro Bank posted underlying profit before tax of £2m for Q1, up 33% on the £1.5m reported in the fourth quarter of 2016.

Total net loans as of 31st March 2017 had also grown 57% year-on-year to £6.5bn, of which 35% were loans to commercial customers.

Vernon Hill, chairman and founder at Metro Bank, added: "What a superb start to the year for Metro Bank.

“This quarter saw improved performance on every level, across every measure and best of all, we saw many more fans opening accounts.

“Metro Bank remains a revolution in British banking, championing the right of every customer to receive service and convenience tailored to their needs."

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