By George Geddes on Wednesday 25 July 2018
The bank’s deposits, loans and assets have all seen a rise over the last 12 months with more branches to open later this year.
Metro Bank has seen a four-fold increase in its profit before tax, from £6.0m in H1 2017 to £24.1m in H1 2018. This represents continued growth from Q1 of this year which saw £10m in profit before tax posted, although this was followed by a 10 per cent drop in the bank's share price to £33. Again, the bank has seen a drop in its share price following the results, falling 7 per cent from £35 to £32.50 overnight.
The market is no doubt reacting to a U-turn from the bank, which in tandem to releasing its results has announced plans to raise more than £300m through a share placing. As recently as April, Metro had said that it would not need to raise more money this year.
Focusing on the positives, CEO at Metro Bank, Craig Donaldson (pictured), said: “Almost eight years to the day we opened the doors to our first store and I’m delighted with the momentum demonstrated by the performance in the first half of 2018. We have delivered a 55 per cent growth in lending and 40 per cent growth in deposits year-on-year, and welcomed a record 201,000 new customer accounts.”
The financial highlights at the end of H1 also include an 18 per cent rise in deposits, increasing from £11.669m to £13.736m. Additionally, there is a 25 per cent rise in loans, from £9.620m to £12.013m.
2018 has been a busy year for the bank following the launch of its developer portal for open banking and completing its bid for the RBS alternative remedies package. Commenting on recent projects, Donaldson reiterates the priority of customer satisfaction.
“This month, we launched our developer portal, which opens up our banking platform to third parties to develop products and services to help make customers’ lives easier. This commitment to meeting the digital and physical needs of our customers continues to attract new fans every day.”
Having opened two new branches in Watford and Southampton in the last month, there are plans to open 12 new stores by the end of 2018. This will likely see a larger increase in customer account numbers, which are up over 200,000 in 6 months at 1,418,000.