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Metro Bank PLC

Metro Bank Plc Another strong year of growth

Metro Bank Plc (LON:MTRO), today announced FY 2018 results preview and trading update.

 

 

FY 31

December

2018

(unaudited)

FY 31

December

2017

(audited)

Change From

Full Year

2017

Assets

£21.7bn

£16.4bn

32%

Loans

£14.2bn

  £9.6bn

48%

Deposits

£15.7bn

£11.7bn

34%

Loan to Deposit ratio

91%

82%

Underlying1 profit before tax

£50m

£21m

138%

Underlying1 EPS (basic)

40p

19p

111%

1. Underlying excludes Listing Share Awards, impairment of property, plant & equipment (“PPE”) and intangible assets and costs relating to the RBS alternative remedies package application

Recent trading

Trading in the fourth quarter continued the trends witnessed in the first three quarters led by over 100,000 new customer accounts joining the bank. During the fourth quarter we opened stores in Bath, Crawley, Northampton, Putney, Ashford, and Piccadilly and neared completion of Moorgate, which opened in early January. Metro Bank now has 66 stores ranging from Canterbury in the East to Bristol in the West of England with a further seven stores in advanced planning stages or under construction.

Deposits reached £15.7bn as at 31 December 2018, an increase of 34% vs 2017, following quarterly growth of £848m. Deposit growth per store per month for 2018 was £5.9m (2017 £6.3m). Customer loans totaled £14.2bn, an increase of 48% vs 2017, following quarterly growth of £1.1bn. Total assets were £21.7bn, an increase of 32% vs 2017. Risk weighted assets at full year are expected to be approximately £8.9bn with the increase driven by both net loan growth and an adjustment in the risk weighting of certain commercial loans secured on property and certain specialist BTL loans to large portfolio landlords. Total capital ratio is expected to be approximately 15.8% as at December 31 2018.

Underlying profit before tax of £50m for 2018 grew by 138% vs 2017, but softened as the last quarter progressed. Management intends to give an update on outlook at the full year results on 27 February 2019.

Commenting on today’s announcement, Craig Donaldson, Metro Bank CEO, said:

“2018 was another strong year of growth for Metro Bank as we continued to invest in both new stores and digital capabilities to win customers, deposits, assets and to create FANS. Metro Bank remains well positioned to support our growth strategy as we navigate an uncertain period for the UK.”