Profits surge at Metro Bank

Metro Bank. Pic: PA.
Metro Bank. Pic: PA.
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Metro Bank has reported a surge in third-quarter profit as the group hailed a surge in deposits and record lending growth.

The challenger bank saw statutory profit more than double from £4.7m to £10m in the three months to September 30.

On an underlying basis, pre-tax profit came in at £15.1m, up from £7.2m in the same period last year.

Metro said in the first nine months of 2018 it delivered double-digit growth in deposits and record lending growth year-on-year.

The group said that, for the fourth successive quarter, it exceeded £1bn in net lending.

Total deposits increased to £14.8bn up from £10.8bn at the same time in 2017.

Boss Craig Donaldson said: “The first nine months of 2018 show another strong performance from Metro Bank.

“Our integrated, frictionless model - stores, online, mobile and phone - combined with superior service is a winning formula for our customers.

“We have continued to invest in our mobile services and have harnessed the power of Artificial Intelligence.”

However, Metro’s net interest margin - the difference between the interest received from borrowers and the amount paid out on deposits - fell from 1.94 per cent to 1.77 per cent.

The lender pinned the blame on competition in residential mortgages.