UK-challenger Metro Bank has reported underlying profit before tax for the quarter to end March 2018 of £10.0m (Q117: £2.0m).
Lending growth of £1.35bn, up 69% year-on-year to £11.0bn was driven by strong organic growth, supplemented by the acquisition of a seasoned mortgage portfolio.
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Metro Bank’s deposits rose by 41% y-o-y to £12.7bn.
Net deposit growth per store per month – a key Metro Bank measure – rose to £6.3m in the first quarter against £5.9m in the prior quarter, representing annualised deposit growth per store of £76m.
Metro Bank chairman and founder Vernon Hill told RBI: “Core deposits remain the real value creator. Current account deposits, largely non-interest bearing rose by 51% year-on-year and are now 31% of total deposits, up from 29% this time last year.
“The typical branch in the US say, will maybe open 25 new current accounts per month; a Metro Bank store opens over 700 current accounts per month.”
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By GlobalDataOn branch expansion, Hill said that Metro Bank’s current network of 55 stores would rise to 67 by the end of the year.
“Of our current network of 55 stores, 49 are already in profit and the six that are not have been open for less than a year
Metro Bank’s loan to deposit ratio in the first quarter was 86% against 72% in the year ago quarter; total assets soared by 54% to £17.9bn.
Customer account numbers rose in the past quarter by 88,000 to just over 1.3 million.
Metro Bank CEO Craig Donaldson, Chief Executive Officer at Metro Bank said:
“We will continue to find new ways to make our customers’ lives easier. Over the course of the year we will invest significantly in our digital offering to combine the best of fintech with our fanatical focus on service.
“Our artificial intelligence “Insights” tool will be launched this summer on our already award-winning mobile app. We’re extending the store footprint into thriving towns and cities in the West and Midlands while strengthening our presence on the South coast, with five stores already in build.
“Our commitment to deliver superior service to SMEs is stronger than ever. For too long, the big five banks have had an unhealthy stranglehold on the SME banking sector and businesses have been crying out for an alternative. In London and the South East – which accounts for 34% of the UK’s SME market – we are seeing thousands of businesses switch to us, proving that when there is a credible alternative to the incumbents, businesses vote with their feet.”
