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Metro Bank 'sees no change in customer behaviour' with 63% jump in revenue

London-based Metro Bank has announced a 63% jump in revenue, along with strong growth in deposits and loans as it continues towards profitability.

The challenger bank, which was the first new British high street bank in over 150 years, saw revenue rise to around £8.3m, a 63% increase year-on-year and a 23% rise from Q1.

Its loan book also saw a large increase, rising to £4.6m this quarter from £4.1m in the first quarter of the year, according to its quarterly results posted to the stock exchange this morning.

The FTSE-250 listed bank is still operating at a loss as it continues its long march towards profitability, with quarterly losses sitting at £4.1m down from losses of £7.9m from Q1, a drop of 62%.

Craig Donaldson, Chief Executive Officer at Metro Bank praised an ‘excellent’ second quarter for the bank and said the firm was closing in on profitability, underlined by a significant growth in lending.

He commented: “I am pleased with both the momentum and quality of our lending, as we continue to actively support our customers by enabling more businesses to grow and people to buy their houses, with a 110% year-on-year increase in lending.

“Strong growth across both residential mortgages and commercial lending has resulted in our Loan to Deposit ratio further improving to 70%.

“Total deposits increased 74% year-on-year to £6.6bn, with deposits coming from a diversified mix of both businesses and retail customers.

Touching on the EU referendum, Craig added that the bank was well placed to deal with any economic fall out and that, thus far, there had been no noticeable change in consumer behaviour.

He added: “Metro Bank is in a strong position to deal with any post European Referendum uncertainty. Since the Referendum vote we have seen no change in customer behaviour or impact on business flows.”

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