Metro Bank share price drops despite profit boost as it posts record deposit growth in the first quarter of 2017

 
Caitlin Morrison
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Metro Bank is still aiming to post an annual profit (Source: Getty)

Metro Bank has reported record deposit growth in the first quarter of this year, with lending also increasing.

The figures

The challenger's assets increased to £11.6bn during the quarter, up 57 per cent from this time last year.

Loans were also up 57 per cent, to £6.8bn from £4.1bn in the first quarter of 2016, and quarterly growth in deposits exceeded £1bn for the first time, rising to £9bn from just under £8bn in the final quarter of last year.

Metro Bank also reported a record 72,000 increase in customer accounts to 987,000.

The firm posted an underlying profit of £2m, compared with a loss of £9.6m last year, while statutory profit also swung to £1.1bn from a loss of £11.1bn in the first quarter of 2016.

Shares were down 2.34 per cent at the open.

Why it's interesting

Metro is yet to reach the milestone of posting an annual profit, but today's results show it's heading in the right direction.

Chief executive Craig Donaldson told City A.M. earlier this year the bank could have reached profitability earlier, but had chosen to invest in growth rather than post big numbers more quickly.

What Metro Bank said

"This is another great quarter for Metro Bank, and the results are a testament to the strength of the model and our focus on the integration of stores and technology," said Donaldson.

"We continue to grow the business, and remain on track to open a further ten stores before the year end."

Vernon Hill, the bank's founder and chairman, added: "What a superb start to the year for Metro Bank. This quarter saw improved performance on every level, across every measure.

"Our combination of great online and mobile banking and an exceptional in store experience is making a positive difference to our customers."

Metro Bank remains a revolution in British banking, championing the right of every customer to receive service and convenience tailored to their needs.

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