Metro Bank thanks its fans for record growth

Metro Bank has reported record growth thanks to its ‘fans’ amongst the public and business.

The bank, which listed on the London Stock Exchange in March, said deposits grew by a best-ever £790million in the first quarter with lending growth soaring by a high of £586million and record customer account acquisition of 62,000.

Total deposits rose 75% year-on-year to £5.9billion coming from a diversified mix of both businesses and retail customers. It said retail deposits climbed 77% to £2.7billion and commercial deposits up 73% to £3.1billion.

Total loans were up 125% to £4.1billion and record net deposit growth per store per month of £6.6million.

Customer accounts have increased from 655,000 on 31 December 2015 to 717,000.

Overall in the three months to March 31 total revenues climbed 11% to £37.7million and an improvement in its underlying loss to £7.9million from £10.2million last time.

Craig Donaldson, chief executive officer, said: “We have had a strong opening quarter in 2016. I am particularly pleased with the momentum and quality of our lending driven by strong growth in both residential mortgages and commercial lending. We continue to move towards profitability.”

Vernon Hill, chairman and founder, said: “We continue to create a banking revolution by building Metro Bank into a major banking force in the UK. Our constant focus on customer service and convenience across all our channels, supported by our flexible IT and powerful AMAZE culture, continues to differentiate us, and provide a compelling competitive advantage in the UK market. Every day we welcome new customers into our stores and make them Fans with our exceptional customer service.” He expects it to move into profit later this year.

The bank also completed a £400million capital raise over the period. It has total assets of £7.3billion, up from £6.1billion at December 31, 2015 and £4.2billion at March 31 2015.