# Metro Bank Plc Another strong year of growth

- Link: https://www.directorstalkinterviews.com/metro-bank-plc-another-strong-year-of-growth/412765237
- Published: 2019-01-23T07:42:30+00:00
- Author: Charlotte Edwards

**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

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£16.4bn

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32%

  |  
 |

Loans

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£14.2bn

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  £9.6bn

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48%

  |  
 |

Deposits

  |

£15.7bn

  |

£11.7bn

  |

34%

  |  
 |

Loan to Deposit ratio

  |

91%

  |

82%

  |   |  
 |

Underlying^(1) profit before tax

  |

£50m

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£21m

  |

138%

  |  
 |

Underlying^(1) 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.”

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