Metro Bank (MTRO) continued to buck the trend last year, its growth strategy is predicated on opening more branches, or as management calls them, 'stores'. The challenger bank opened eight in the period, taking its network to 48. A further 10 to 12 are planned this year as the bank moves closer towards its target of around 110 stores by 2020.
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This expansion meant operating costs increased by 27 per cent compared with the prior year, but loan growth was faster, led by residential mortgages. Total loans were £5.87bn at the end of December, up two-thirds on 2015, and now represent 74 per cent of deposits (2015-end: 69 per cent). This growth helped drive down pre-tax losses.