Metro Bank profits treble as UK’s newest high street bank continues strong growth
Metro Bank profits have trebled as the UK's first new high street bank in 150 years continues its strong growth.
The bank, launched in 2010, reported underlying pre-tax profit of £39.2m for the nine months to 30 September, a 197 per cent increase on the same period in 2017.
But the bank said competition in the mortgage market was “exerting pressure” on asset yields and had impacted on margins.
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Chairman Vernon Hill said the bank now had 1.5m customer accounts and 60 stores – the latest of which opened in Bath in October.
Its third quarter results also revealed record lending growth of £4.5bn year-on-year, up 52 per cent to £13.1bn.
“Nine month and third quarter 2018 results demonstrate continued growth across Metro Bank,” the company said.
“Recent competitive trends in the mortgage market, however, have persisted despite the base rate increase in August as we have continued to focus on high quality growth of low risk assets,” it added.
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Underlying pre-tax profit for the third quarter more than doubled to £15.1m from the £7.2m over the same period in 2017.
Chief executive Craig Donaldson said: “The first nine months of 2018 show another strong performance from Metro Bank.
“We delivered double digit growth in deposits, record lending growth year-on-year and for the fourth successive quarter exceeded £1 billion in net lending.
“Profit trebled to £39.2 million and we welcomed over 300,000 new customer accounts.”
Underlying pre-tax profit for the third quarter more than doubled to £15.1m from the £7.2m over the same period in 2017.