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Metro Bank reports record third quarter growth

27th October 2015
  • Total deposits reach £4,387 million; a record quarterly increase of 16% and 87% year-on-year
  • Total loans grew to £2,999 million; a record quarterly increase of 36% and 116% year-on-year
  • Customer accounts surpass 601,000; a record quarterly increase of 57,000

Metro Bank today reports its third quarter trading figures to 30 September 2015 – showing record quarterly growth in deposits, lending and customer acquisition.

Craig Donaldson, Chief Executive Officer, Metro Bank commented: “During the last quarter we’ve seen accelerated growth on a number of fronts, including lending, deposits and customer acquisition as more customers join the banking revolution. Lending was particularly strong – reaching a record quarterly increase of 36% and 116% year-on-year as we continue to support personal and business customers.”

Vernon Hill, Founder and Chairman, Metro Bank commented: “As we enter our sixth year, I’m delighted that we’re continuing to grow at an ever impressive rate. UK banking customers have long been crying out for a better service and we’re here to provide it. We truly value our customers and they know that, and it’s why we’ve opened a record number of accounts during the last quarter. In turn, their support has enabled us to take the revolution wider – achieving record growth in the last three months.”

Highlights for the third quarter ended 30 September 2015:

  • Total assets grew to £5,433 million in the third quarter, up from £4,567 million at end second quarter; a quarterly increase of 19% and 70% year on year
  • Total deposits grew to £4,387 million – a record quarterly increase of £596 million (16%) from £3,791 million as at 30 June 2015, representing year-on-year growth of 87%
  • Deposits from commercial customers accounted for 68% of total deposits as of 30 September 2015, remaining stable from 67% as of June 2015
  • Net deposit growth per store per month grew to £5.5 million during Q3 2015 – up from £4.8 million in Q3 2014
  • 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 77%
  • Total gross loans climbed to £2,999 million – a record quarterly increase of £798 million (36%) from £2, 201 million as at 30 June 2015, representing year-on-year growth of 116%.
  • Growth included the purchase of a £344m residential mortgage loan book. Growth without this purchase would be 21% in the quarter and 91% year on year
  • Supporting small business remains a key priority for Metro Bank. Of total loans as at 30 September 2015, those to commercial customers represent more than a third (36%)
  • Customer acquisition remains very strong, increasing by a quarterly record of 57,000 accounts, helping the total number of personal and business customer accounts to surpass 601,000. This represents a quarterly increase of 10% and a year-on-year increase of 51%
  • Capital ratios remain robust and well above regulatory requirements. Capital as a percentage of risk weighted assets (the standard measure of capital strength) is 16%. Leverage ratio (total assets/ shareholders’ funds) is 8%
  • Metro Bank continued to invest in its store network over the quarter, with a new store opening in Aylesbury
  • During the quarter, Metro Bank significantly strengthened its senior team, welcoming Sir Michael Snyder as Non-Executive Director and appointing two new additions to its Leadership Team to help lead the revolution in British banking! Ian Walters joined as Managing Director of Commercial Banking and Iain Kirkpatrick joined as Managing Director of Regional Banking. Sir Michael’s appointment is subject to regulatory approval
  • We continue to target a listing in 2016 and have appointed advisers