Metro Bank PLC Q1 Trading Update (7874W)
April 28 2021 - 01:00AM
UK Regulatory
TIDMMTRO
RNS Number : 7874W
Metro Bank PLC
28 April 2021
Metro Bank PLC (LSE: MTRO LN)
28 April 2021
First Quarter 2021 Trading Update
31 31 Change from 31 Change from
GBP in millions March December full year March Q1 2020
2021 2020 2020 2020
Assets GBP22,899 GBP22,579 1% GBP21,291 8%
Loans GBP12,046 GBP12,090 - GBP14,512 (17%)
Deposits GBP16,412 GBP16,072 2% GBP14,554 13%
Loan to deposit ratio 73% 75% (2)pp 100% (27)pp
----------------------- ---------- ---------- ------------ ---------- ------------
Q1 total deposits of GBP16,412 million were 2% above the full
year position , with continued mix improvement driven by growth
across business and retail customers' instant access and current
accounts, together with a reduction in higher-cost fixed term
deposits. As previously stated, maintaining a high-quality deposit
mix rather than expansion remains the focus for 2021.
Q1 total net loans were broadly flat at GBP12,046 million with
strong growth in consumer lending supported by the integration of
the RateSetter platform and continued growth in capital-efficient
government-supported business lending, offset by the attrition of
lower-yielding residential mortgages and commercial term loans.
Credit impairments continued to be benign and in line with guidance
provided at the full year. The marginal reduction in loan to
deposit ratio in Q1 to 73% reflects deposit growth since the year
end, while the year-on-year decrease includes the mortgage
portfolio disposal and increase in deposits during the period. The
GBP3.1 billion mortgage portfolio disposal successfully completed
on 2 February created capital headroom, as well as excess liquidity
that is currently suppressing net interest margin.
Delivery of the five strategic priorities continues at pace,
including completion of the GBP337m RateSetter back book
acquisition on 2 April and roll-out of unsecured personal lending
through the RateSetter platform across all channels, including
stores on 12 April. The range of higher-yielding specialist
mortgages has also expanded to include near prime and 95% loan to
value residential mortgages.
Customer activity dipped in January following the introduction
of the third national lockdown in late December, recovering as the
quarter progressed and helped by the gradual easing of restrictions
in April.
Daniel Frumkin, Chief Executive Officer at Metro Bank, said:
"Metro Bank has delivered a solid first quarter, with continued
improvement in deposit mix. We are also beginning to see progress
across our loan book, with strong growth in consumer lending and
specialist mortgages as we focus on assets delivering higher
risk-adjusted returns. Our turnaround strategy is ongoing and I
remain incredibly grateful for how colleagues have continued to
step-up to deliver for our customers and communities during these
challenging times."
For more information, please contact:
Metro Bank PLC Investor Relations
Jo Roberts
+44 (0) 20 3402 8900
jo.roberts@metrobank.plc.uk
Metro Bank PLC Media Relations
Mona Patel / Abigail Whittaker
+44 (0) 7815 506845 / +44 (0) 7989 876136
pressoffice@metrobank.plc.uk
Teneo
Charles Armitstead / Haya Herbert Burns
+44 (0)7703 330269 / +44 (0) 7342 031051
Metrobank@teneo.com
ENDS
About Metro Bank
Metro Bank serves more than two million customer accounts and is
celebrated for its exceptional customer experience. It is the
highest rated high street bank for overall service quality for
personal and business customers and the number one bank for service
in stores in the Competition and Market Authority's Service Quality
Survey in February 2021. It was recognised as 'Bank of the Year' at
the 2020 MoneyAge Awards and 'Banking Brand of The Year' at the
Moneynet Personal Finance Awards 2021.
The community bank offers retail, business, commercial and
private banking services, and prides itself on giving customers the
choice to bank however, whenever and wherever they choose, and
supporting the customers and communities it serves. Whether that's
through its network of 77 stores open seven days a week, early
until late, 362 days a year; on the phone through its UK-based 24/7
contact centres; or online through its internet banking or
award-winning mobile app: the bank offers customers real
choice.
Metro Bank PLC. Registered in England and Wales. Company number:
6419578. Registered office: One Southampton Row, London, WC1B 5HA.
'Metrobank' is the registered trademark of Metro Bank PLC.
It is authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and Prudential
Regulation Authority. Most relevant deposits are protected by the
Financial Services Compensation Scheme. For further information
about the Scheme refer to the FSCS website www.fscs.org.uk.
All Metro Bank products are subject to status and approval.
Metro Bank PLC is an independent UK bank - it is not affiliated
with any other bank or organisation (including the METRO newspaper
or its publishers) anywhere in the world. Please refer to Metro
Bank using the full name.
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