REG - Metro Bank PLC - Half-year Report <Origin Href="QuoteRef">MTRO.L</Origin>
RNS Number : 3131FMetro Bank PLC27 July 2016Metro Bank PLC
H1 and Q2 Trading Update 2016
July 27, 2016
METRO BANK CONTINUES TO SEE SIGNIFICANT GROWTH IN DEPOSITS AND LOANS
Metro Bank PLC (LSE: MTRO) has delivered another strong trading performance in H1/Q2 2016 as it continues to create Britain's leading growth bank.
Quarter ending
in millions
30 June 2016
31 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 (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 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%).
30
June
2016
'm
31
March
2016
'm
30
June
2015
'm
%
change
in Quarter
% 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:
Deposits from retail customers
3,155
2,775
1,738
14%
82%
Deposits from commercial customers
3,444
3,123
2,053
10%
68%
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%).
30
June
2016
'm
31
March
2016
'm
30
June
2015
'm
%
change
in Quarter
% change
in
Year
Gross Loans and advances to customers
4,637
4,136
2,213
Less: allowance for impairment
(8)
(7)
(7)
Net Loans and advances to customers
4,629
4,129
2,206
12%
110%
Gross loans and advances to customers includes:
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 YouGov2.
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:
http://event.onlineseminarsolutions.com/r.htm?e=1219888&s=1&k=3F13CD2CAD5901D202AFCDD2EE8B1156
URL for International Dial in numbers: http://events.arkadin.com/ev/docs/NE_FEL_Events_International_Access_List.pdf
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+).
For more information, please contact:
Metro Bank PLC Press Office
Deborah Lewis
+44 (0)20 3427 1485
Metro Bank PLC Investor Relations
Jo Roberts
+44 (0)20 3402 8900
Tulchan Communications
Martin Pengelley
Latika Shah
+44 (0)20 7353 4200
ENDS
About Metro Bank
Retail banking:
7 day a week store banking (8am-8pm Monday to Friday, 8am-6pm Saturday, 11am-5pm Sunday and bank holidays), 362 days of the year
The ultimate in new account opening convenience, with a rapid opening procedure and on the spot bank cards and cheque books (Account Opening conditions apply. All Metro Bank products are subject to status and approval.)
Free coin counting at every store, for customers and non-customers alike, with the Metro Bank Magic Money Machine
A friendly welcome to dogs and their owners, with water bowls and dog biscuits on hand for man's best friend - dogs rule at Metro Bank!
Business banking:
The bank for entrepreneurs: Metro Bank offers tailored business banking services including a full range of lending and cash management solutions
Private banking:
Private by name, personal by nature: Metro Bank Private Banking provides bespoke banking solutions for customers' personal and commercial interests
Metro Bank PLC. Registered in England and Wales. Company number: 6419578. Registered office: One Southampton Row, London, WC1B 5HA. 'Metrobank' is the registered trade mark of Metro Bank PLC. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. 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.
Forward looking statements
This announcement contains certain forward looking statements with respect to the business, strategy and plans of Metro Bank PLC and its current goals and expectations relating to its future financial condition and performance. Such statements are not historical facts, nor are they guarantees of future performance. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that will or may occur in the future.
Metro Bank PLC
Balance Sheet and Profit & Loss Account
Annual Growth Rate
2016
2015
Balance Sheet
30-Jun
31-Mar
31-Dec
30-Jun
'm
'm
'm
'm
Assets
Loans and advances to customers
110%
4,629
4,129
3,543
2,206
Treasury assets 3
3,351
2,906
2,282
2,079
Other assets 4
371
353
323
286
Total assets
83%
8,351
7,388
6,148
4,571
Liabilities
Deposits from customers
74%
6,599
5,898
5,108
3,791
Other liabilities
958
691
633
343
Total liabilities
7,557
6,589
5,741
4,134
Total shareholder's equity
82%
794
799
407
437
3 Comprises investment securities, cash & balances with the Bank of England, and loans and advances to banks
4 Comprises property, plant & equipment, intangible assets and other assets
Annual Growth Rate
2016
2015
Profit & Loss Account - quarterly
Q2
Q1
Q2
'000
'000
'000
Net interest income
36,156
30,507
19,881
Fee and other income
8,575
7,240
6,244
Net gains on sale of securities
1,561
40
2,235
Total revenue
63%
46,292
37,787
28,360
Operating expenses
(48,445)
(46,236)
(37,249)
Credit impairment charges
(1,292)
(1,113)
(724)
Underlying loss before tax
(64%)
(3,445)
(9,562)
(9,613)
Underlying taxation
(700)
1,617
2,018
Underlying loss after tax
(45%)
(4,145)
(7,945)
(7,595)
Listing and related costs
(768)
(3,107)
-
FSCS levy (net of tax)
(1,002)
-
(427)
Statutory loss after tax
(5,915)
(11,052)
(8,022)
Annual Growth Rate
2016
2015
Profit & Loss Account - half yearly
H1
H1
'000
'000
Net interest income
66,663
37,632
Fee and other income
15,808
12,118
Net gains on sale of securities
1,601
6,125
Total revenue
50%
84,072
55,875
Operating expenses
(94,675)
(74,188)
Credit impairment charges
(2,405)
(1,831)
Underlying loss before tax
(35%)
(13,008)
(20,144)
Underlying taxation
917
4,059
Underlying loss after tax
(25%)
(12,091)
(16,085)
Listing and related costs
(3,875)
-
FSCS levy (net of tax)
(1,002)
(427)
Statutory loss after tax
(16,968)
(16,512)
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR RFMFTMBBTBTF
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