Metro Bank attracts deposits as lending soars but losses mount

 
Tim Wallace
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NEW LENDER Metro Bank saw lending soar 300 per cent through 2012, its latest accounts revealed.

Gross lending hit £168m in the year, up from £42m in 2011 and 116,000 in 2010, the documents showed. And deposit levels hit £576m, up from £152m in 2011 and from £18m in 2010.

However in the same period the group’s losses also increased sharply. Pre-tax losses came in at £45.7m, up 38.2 per cent on the £33.1m lost in 2011.

Operating expenses formed a large part of that increase, rising sharply to £56.8m from £37.6m in 2011, as the group continued to expand rapidly.

“The bank’s relentless focus on customer service and convenience supported by our flexible IT and powerful culture continues to strongly differentiate us in the market,” said Metro Bank’s chairman Vernon Hill.

He noted 71 per cent of working Londoners now say they recognise the brand, up from 57 per cent in the third quarter of last year.