Metro Bank eyes profits, as statutory losses shrink for third quarter
Metro Bank is now a stone's throw from turning a quarterly accounting profit, but the boss of the challenger is more pleased about the bank's customer growth.
The figures
The up-and-coming lender announced statutory losses of £0.4m for the three months to September, a significant improvement on losses of £5.9m in the quarter before and £10.7m the year before.
However, on an underlying basis, the bank has swung into a profit-making position for the first time, with profits before tax of £0.6m, compared with a loss of £3.4m the quarter before and a loss of £13.4m this time last year.
Total revenue also grew to £53.4m, up 78 per cent from £30m for the third quarter of the year before and up 15 per cent from £46.3m for the last quarter.
Why it's important
It's not an easy time to be a bank, as lower for longer interest rates, which got even lower over the summer, continue to put a squeeze on the revenue lenders can hope to pull in. However, Metro has proved it is still possible to keep growing in the business-unfriendly environment, not only increasing revenues but also boosting account numbers during the quarter by 68,000, or by 41 per cent year-on-year.
Craig Donaldson, chief executive at Metro Bank, told City PM the customer growth figure was the number he was "most proud" of on the results statement, adding: "That customer growth, that's what powers the future and that's what gives me the confidence about the profits to come because, if we win customers and we deliver to them, we will make more money."
The bank also opened its 43rd branch, or store as it calls them, in Wimbledon last weekend, with another in Clapham due to open later this week. The bank plans to open another four branches before the year is out.
What Metro Bank said
Vernon Hill, chairman and founder at Metro Bank, said in a statement:
Metro Bank is the revolution in British banking and, as we go from strength to strength, we continue to create 'Fans not Customers'. Our relentless focus on customer service and convenience has helped us to achieve so much in such a short period of time.
In short
This challenger bank continues to go from strength to strength