Metro Bank revealed this morning it had taken a leap closer to turning an annual profit during 2016.
The challenger bank reported an underlying loss before tax for the year of £11.7m, an improvement of 75 per cent compared with £46.6m the year before, and a statutory loss before tax of £17.2m, compared with £56.8m the year before.
Revenue for the year grew to £195.1m, up 62 per cent from £120.2m the year before.
Meanwhile, deposits shot up 56 per cent for the year to just short of £8bn and lending rose 66 per cent year-on-year to £5.9bn.
Shares in the challenger bank rose 1.5 per cent in early trading.
Why it's interesting
By comparison to the more established players, Metro Bank is a brave new venture into the world of banking. In 2010, it became the first high street bank to open its doors in over 100 years.
Unlike many of its fellow challengers, its business model is also still focused on a traditional bricks-and-mortar branch – or store, as it prefers to call them – network, as opposed to a purely digital offering. That's not to say the lender is totally without a digital presence, however, launching a new public website in August and a commercial banking platform in November.
The bank also listed on the London Stock Exchange last March, making this its first set of full-year results since becoming a listed company.
Read more: Metro Bank gets down to business
What Metro Bank said
"It’s been another great quarter and I’m delighted with our full-year performance," said chief executive Craig Donaldson. "We continue to show significant growth across lending, deposits and customer account numbers with continued integration of technology across all our channels, including stores, creating a compelling service experience for our retail and business customers".
Chairman Vernon Hill added:
The response of the British public to Metro Bank has exceeded our expectations. Our goal is to create a legendary, emotional brand by creating fans who join our brand, remain loyal and bring their friends.
I’m very proud of the bank’s success over the past 12 months, and my thanks go to our colleagues, investors and fans who are Metro Bank. I am confident that this is just the beginning, the best is yet to come.