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Metro Bank continues to see significant growth in deposits and loans

26th July 2016

Metro Bank PLC has delivered another strong trading performance in H1/Q2 2016 as it continues to create Britain’s leading growth bank.

Quarter ending £ in millions30 June 201631 March 2016% Improvement In Qtr.30 June 2015% Improvement In Year
Assets £8,351 £7,388 13% £4,571 83%
Loans £4,629 £4,129 12% £2,206 110%
Deposits £6,599 £5,898 12% £3,791 74%
Loan to Deposit Ratio 70% 69% - 58%
Total Revenue £46.3 £37.8 23% £28.4 63%
Underlying profit/(loss) after tax1 £(4.1) £(7.9) 48% £(7.6) 45%
Underlying (loss) per share £(0.05)p £(0.13)p 62% £(0.13)p 60%

Note: all figures contained in this trading update are unaudited
1 Underlying loss after tax excludes listing and related costs and the FSCS levy

Craig Donaldson, Chief Executive Officer at Metro Bank said:

“We have had an excellent Q2 and first half of 2016, generating substantial growth in deposits and lending; joining the FTSE-250; and continuing to move towards profitability. Revenue is up 63% year-on-year and the underlying quarterly loss after tax down to £4.1m, compared to £10.2m in Q4 2015 and £7.9m in Q1 2016.

“I am pleased with both the momentum and quality of our lending, as we continue to actively support our customers by enabling more businesses to grow and people to buy their houses, with a 110% year-on-year increase in lending. Strong growth across both residential mortgages and commercial lending has resulted in our Loan to Deposit ratio further improving to 70%.

“Total deposits increased 74% year-on-year to £6.6bn, with deposits coming from a diversified mix of both businesses and retail customers.

“Metro Bank is in a strong position to deal with any post European Referendum uncertainty. Since the Referendum vote we have seen no change in customer behaviour or impact on business flows.”

Vernon Hill, Chairman and founder at Metro Bank commented:

“Six years on from our launch, we are the Revolution in British banking. Our relentless focus on customer service and convenience, supported by state-of-the-art IT and a powerful AMAZE culture, continues to distinguish us and provides a compelling competitive advantage in the Metro Bank PLC market. As we celebrate our 6th anniversary, we would like to thank all our customers, colleagues and investors who have supported us in our mission to develop Metro Bank into a major banking force in the UK.

We look forward to creating even more fans over the years ahead.”

Highlights for the Half Year and Second Quarter Ended 30 June 2016

  • As of 30 June total assets were £8,351m, up from £7,388m at 31 March 2016 and £4,571m at 30 June 2015; representing year-on-year growth of 83% and 13% growth in the quarter.
  • The loan to deposit ratio increased to 70% (31 March 2016: 69%; 30 June 2015: 58%).
  • Robust net deposit growth per store per month of £5.7m ($7.6m) in Q2 2016 versus £6.6m ($8.8m) in Q1 2016, and £4.0m ($5.3m) in Q2 2015.
  • Comparative store deposit growth (a measure of deposit growth using deposit numbers from stores that have been operating for more than a full year) is 66%.
  • As of 30 June total deposits were £6,599m, up from £5,898m at 31 March 2016 and £3,791m at 30 June 2015; representing year-on-year growth of 74% and 12% in the quarter. Deposits for the second quarter grew £701m. Deposits from commercial customers represent 52% of 30 June 2016 total deposits (December 2015: 53%).


Quarter ending £ in millions30 June 2016 (£'m)
31 March 2016 (£'m)30 June 2015 (£'m)% Change In Qtr.% Change In Year
Demand: non-interest bearing 1,749 1,587  1,067 10%  64%
Demand: interest bearing 2,854 2,476  1,777 15% 61%
Fixed Term 1,996 1,835  947 9% 111%
Deposits from Customers 6,599 5,898  3,791  12% 74%

Deposits from customers includes:

Quarter ending £ in millions30 June 2016 (£'m)31 March 2016 (£'m)30 June 2015 (£'m)% Change In Qtr.% Change In Year
Deposits from retail customers 3,155
Deposits from commercial customers 3,444


  • Total loans as of 30 June were £4,629m, up from £4,129m at 31 March 2016 and £2,206m at 30 June 2015; an increase of 110% year-on-year, and a 12% increase in the quarter. Loans to commercial customers represent 35% of total lending as of 30 June (December 2015: 36%).

Quarter ending £ in millions30 June 2016 (£'m)31 March 2016 (£'m)30 June 2015 (£'m)%Change In Qtr.% Change In Year
Gross Loans and advances to customers 4,637
- -
Less: allowance for impairment (8)
- -
Net Loans and advances to customers 4,629
12% 110%

Gross loans and advances to customers includes:

Quarter ending £ in millions30 June 2016 (£'m)31 March 2016 (£'m)30 June 2015 (£'m)%Change In Qtr.% Change In Year
Commercial loans  1,625 1,427  977  14% 66%
Residential mortgages  2,853 2,566 1,162 11% 145%
Consumer and other loans and advances  159 143 74 11% 114%


  • Customer acquisition continues to be very strong. Customer accounts have increased to 780,000 at 30 June 2016 from 655,000 on 31 December 2015; a net increase of 125,000 accounts in the first half of the year. An increase of 43% year-on-year and a 19% increase in H1.
  • Brand Recognition has increased to a record 80% in the London market (77% a year ago); 85% for both those working full-time and the ABC1 demographic according to a recent independent survey conducted by YouGov 2.
  • Underlying loss after tax has improved by 48% quarter-on-quarter to £4.1m (compared to £7.9m in Q1 2016 and £10.2m in Q4 2015). This excludes listing and related costs of £0.8m and the FSCS levy of £1.0m leading to a statutory loss after tax of £5.9m.
  • Asset quality remains strong. Non-performing loans (90 days+) were 0.12% of the portfolio and the loan loss reserve as a percentage of non-performing loans was 146% at 30 June 2016.
  • Capital ratios remain robust and well above regulatory requirements. Common Equity Tier 1 Capital (“CET1”) as a percentage of risk weighted assets is 21%. Regulatory Leverage ratio is 8%.
  • We continue to make progress with our store opening programme. Bexleyheath opened on 22 July and we now have 42 stores.

Analyst and investor webcast

An analyst and investor webcast will be held as follows:

Date: Wednesday 27 July 2016

Time: 2.00pm (London time)

Audience URL:

URL for International Dial in numbers: 

Dial: +44 (0)20 3139 4830

Dial: +44 (0)808 237 0030 (UK Toll Free)

Participant Pin: 30981719#

2  Brand awareness figures are from YouGov Plc.  Total sample size was 1020 adults. Fieldwork was undertaken between 5th - 7th July 2016.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).