Metro Bank daily flows returning to normal after capital injection

The London-listed bank announced the capital injection on 8 October, which included £150m in new equity and £175m in new ‘minimum requirement for own funds and eligible liabilities’ (MREL) issuance.

Additionally, it undertook debt refinancing worth £600m.

It said that as of 30 September, its total assets stood at £21.61b - a slight decrease from the figure reported on 30 June of £21.75bn.

Compared to the same period last year, there had been a decrease of 4% in total assets.

Metro Bank’s loans amounted to £12.51bn at the end of September, showing a stable position compared to the figure reported on 30 June of £12.57bn.

However, there was a 2% decrease in loans when compared to the third quarter of last year.

The bank reported deposits amounting to £15.61bn on 30 September, indicating a 1% increase from the figure reported at the end of June of £15.53bn.

Still, compared to the same period last year, there was a 5% decrease in deposits.

Metro Bank said its loan-to-deposit at the end of September stood at 80%, showing a decrease of one percentage point from the ratio reported on 30 June of 81%.

When compared to the third quarter of last year, however, there was a two percentage point increase in the loan-to-deposit ratio.

“As announced on 8 October, post-quarter-end Metro Bank noted an increase in deposit outflow rates in advance of the announcement of the capital package,” the company said in its statement.

“Since the announcement, daily flows have returned to more normal ranges.”

Metro Bank’s board noted that the third quarter delivered continued momentum in personal and business current account growth and customer acquisition, as well as a modest statutory profit after tax.

“Lending reflects continued controlled asset origination and as such capital resources were broadly flat relative to 30 June levels.”

At 1003 GMT, shares in Metro Bank Holdings were down 4.38% at 40.69p.

Reporting by Josh White for Sharecast.com.