Metro bank (LON:MTRO) is set to achieve its first ever profit, after narrowing its losses for 2016.
The bank saw profits boosted by record levels of growth in lending, deposits and customer account numbers. Revenue rose 62 percent to £195 million, after a 56 percent increase in deposits which totaled £7.9 million. In addition, the bank noted a 66 percent increase in lending to £5.86 million, adding 260,000 customer accounts to its total 915,000.
“We continue to show significant growth across lending, deposits and customer account numbers with continued integration of technology across all our channels, including stores, creating a compelling service experience for our retail and business customers.”
In light of the promising year, the bank is set to expand operations, opening a further 10-12 branches in a bid to assert itself as a challenger to the more established high-street Banks.
This comes amid various banks have been shutting down their branches, in a bid to reduce costs. HSBC (LON:HSBA) announced their intention to close 62 high-street locations, amid a plunge in profits by 62 percent. Banks in the UK remain cautious of the potential upset from Brexit negotiations and the subsequent devaluation of the pound sterling currency. However, Metro maintained that they have yet to witness a change in climate as a result of the referendum.
Consequently, Metro Bank reaffirmed that they remain on track to produce its 2020 outlook, with an aim of introducing 110 new stores, average growth in deposits per montly per location of £5.25 million, a loan to deposit ratio of 80 percent, cost-to-income ratio of 60 percent as well as net interest margin and fees of about 3 percent with a return on equity of 18 percent.
Shares remain steady following the reporting, up by 0.97 percent as of 14.05PM (GMT).