Metro Bank posts first quarterly profit

The bank generated an underlying pre-tax profit of £0.6m compared a £3.4m loss in the same quarter last year, as revenue rose to £53.4m from £46.3m.

Chief executive officer Craig Donaldson said: "I am delighted to announce another strong quarter, with substantial growth across lending, deposits and customer accounts as well as the bank reporting its first quarterly underlying profit. We continue to show strong deposit growth even as the cost of our deposits falls. This clearly demonstrates that our offering of high-impact, convenient high street stores, UK based contact centres and easy to use online and mobile services is persuasive for retail, business and private customers.

"We continue to expand the business to generate long-term, sustainable growth, with revenue up 78% year-on-year and an underlying quarterly profit before tax for the first time of £0.6m. As we move into underlying profit our customer-focused culture and commitment to providing a superior banking experience remain at the very forefront of our offering, and we look forward to welcoming even more retail, business and private banking customers to the banking revolution."

As of 30 September, the bank’s total assets were £9.0bn, up from £8.4bn at the end of June and £5.4bn at the end of September last year, representing year-on-year growth of 66% and 8% growth in the quarter.

Total loans as of 30 September were £5.2bn from £4.6bn art the end of June and £3.0bn at the end of September, up 73% year-on-year and a 12% increase on the quarter.

In terms of customer acquisition, accounts rose from 780,000 on 30 June to 848,000 at the end of September, which is a record quarterly net increase of 68,000 accounts. This represents a 41% year-on-year rise and a 9% increase in the quarter.