Metro Bank (MTRO) passed the 1.5m customer mark in the nine months to 30 September, and also delivered a 38 per cent increase in deposits to £14.8bn, while the loan book jumped 52 per cent to £13.1bn. Underlying pre-tax profits doubled to £39.2m, and the bank now operates from 60 branches. But investors have taken fright at margin weakness.
Deposits from business and commercial customers showed the highest growth rates, and now account for over half of all deposits. But costs of deposits rose from 59 basis points in the second quarter to 61 in the third quarter, reflecting the increase in the Bank of England’s base rate and the subsequent interest paid to depositors with variable rate accounts.
The common equity tier 1 ratio rose by 300 basis points to 15.7 per cent, but only after completion of a £30m equity raise in July, although without this it would have remained above the Tier 1 regulatory minimum of 9.7 per cent.
