UPSTART high street lender Metro Bank has seen total losses hit £100m since it launched in 2010, it emerged last night.
The first new UK bank in over a century made pre-tax losses of £45.7m in 2012 before losing a further £8.8m in the first three months of 2013.
Last night a source close to the company told City A.M. that the bank’s expansion plans will not be affected by the losses, which will be shouldered by shareholders including hedge fund giant Steve Cohen and the billionaire Reuben Brothers.
“There’s plenty of money in the coffers,” the source added.
The results also mean that a much-speculated IPO is now unlikely to happen for at least the next two years.
The figures were first revealed in a shareholder circular obtained by Sky News, who said loans and advances grew at an annual rate of 297 per cent for the year to 31 March. Customer deposits grew by 210 per cent to £700m over the same period.
Metro Bank was founded by tycoon Vernon Hill who has attempted to import techniques from his native US into the British banking system.
The company’s 18 stores boast long opening hours, bright displays, and quirky measures such as treats for dogs.
At the moment all its stores are in the south east but Metro Bank hopes to open 40 stores nationwide by 2014, and 200 by 2020.