Metro Bank profit more than doubles as deposits and lending growth surge
Metro Bank has reported a surge in third-quarter profit as the group hailed a surge in deposits and record lending growth.
The challenger bank saw statutory profit more than double from £4.7 million to £10 million in the three months to September 30.
On an underlying basis, pre-tax profit came in at £15.1 million, up from £7.2 million in the same period last year.
What a spectacular nine months 🎉
We smashed through the 1.5 million customer account mark 🙌;Increased underlying profit by 197% 📈;Achieved record growth in lending🏆;And delivered double digit increase in deposits 💰.
Info: https://t.co/pg1YGpNdzR#BankingRevolution
— Metro Bank (@Metro_Bank) October 24, 2018
Metro said in the first nine months of 2018 it delivered double-digit growth in deposits and record lending growth year-on-year.
The group said that, for the fourth successive quarter, it exceeded £1 billion in net lending.
Total deposits increased to £14.8 billion up from £10.8 billion at the same time in 2017.
Boss Craig Donaldson said: “The first nine months of 2018 show another strong performance from Metro Bank.
“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.”
However, Metro’s net interest margin – the difference between the interest received from borrowers and the amount paid out on deposits – fell from 1.94% to 1.77%.
The lender pinned the blame on competition in residential mortgages.
