Challenger bank sees lending more than treble

Founded by US entrepreneur Vernon Hill, the bank has been championed as an alternative to Britain’s ‘big four’ lenders – Lloyds Banking Group, Royal Bank of Scotland, Barclays and HSBC.

Lawmakers and regulators want to stimulate competition within the industry and the competition watchdog last week set out plans for an investigation into banking services for small business and individuals.

Metro Bank, which launched in 2010 as Britain’s first new high street lender for more than a century, said its lending amounted to £1.16bn at the end of June, up 216 per cent year on year. Customer deposits increased to £1.96bn, up 125 per cent.

“Strong growth in lending and deposits continues to demonstrate that the British people need and want a choice about where they do their banking, and we’re here to provide that,” said chief executive Craig Donaldson.

Metro Bank has 27 branches in London and the southeast of England, with five more due to open this year. However, it has yet to make a profit.

The bank made a loss of £9.9m in the second quarter, which it said was due to investment in new staff, branches and technology.