REG-Metro Bank plc Metro Bank plc: First Quarter 2023 Trading Update

Metro Bank HoldingsAnnouncement

03/05/2023 07:15

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   Metro Bank plc (MTRO)
   Metro Bank plc: First Quarter 2023 Trading Update

   03-May-2023 / 07:00 GMT/BST

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                                                               Metro Bank PLC

                                                       Trading Update Q1 2023

                                                                   3 May 2023

    

                         Metro Bank PLC (LSE: MTRO LN)

                                        

                       First Quarter 2023 Trading Update

                                        

                                        

     • The bank was profitable on a statutory basis for the first quarter  of
       2023
     • Second consecutive quarter of underlying profitability
     • Net deposit inflows in March and continued strong account growth

    

                           31       31                  31
                                          Change from         Change from
                          March  December              March
   £ in millions                            Q4 2022             Q1 2022
                          2023     2022                2022
                                                               
   Assets                £22,104 £22,119      0%      £22,727    (3%)
   Loans                 £12,922 £13,102     (1%)     £12,340     5%
   Deposits              £15,596 £16,014     (3%)     £16,498    (5%)
   Loan to deposit ratio   83%     82%      1 ppts      75%     8 ppts

    

    

   Total deposits of £15.6 billion reduced by £0.4 billion from the full year
   position reflecting seasonal  factors, such  as tax  payments in  January,
   partially offset by net  inflows in March. The  bank re-entered the  fixed
   term deposit market  during the quarter  as guided at  the full year.  The
   core customer deposit base continues to be predominantly Retail^1 and  SME
   with low average balances, and a significant majority of customer deposits
   are protected by the Financial Services Compensation Scheme.

    

   The underlying service-led core deposit franchise saw continued growth  in
   customer numbers during the quarter, opening over 54,000 personal  current
   accounts and 12,000  business current accounts.  Current account  openings
   for the quarter were up 18% compared to the same period last year and  20%
   higher than pre-COVID (Q1 2020).

    

   Total lending of £12.9 billion remains  broadly flat compared to the  full
   year  position  as  the  bank   continues  to  strategically  manage   RWA
   allocation.  The  focus  remains  to  optimise  risk-adjusted  return   on
   regulatory capital to improve  margins and profitability. Retail  mortgage
   lending increased  marginally  to  £7.7 billion,  offset  by  the  managed
   reductions in both Consumer lending to £1.4 billion and Commercial lending
   to £3.9 billion.

    

   Profitability  and  a  disciplined  approach  to  asset  allocation   have
   underpinned capital  stability, although  the  bank continues  to  operate
   within its MREL capital buffers2.

    

   Daniel Frumkin, Chief Executive Officer at Metro Bank, said:

   “Metro Bank  has  delivered a  second  consecutive quarter  of  underlying
   profitability and March has been our strongest month of performance  since
   the turnaround  commenced.  We  continued to  attract  more  personal  and
   business accounts,  demonstrating the  strong appeal  of our  service-led,
   community-based  model.  Whilst  we   remain  watchful  of   macroeconomic
   headwinds, we continue to optimise the business for improved risk-adjusted
   returns and are confident in our  plan to become a sustainably  profitable
   growth engine.”

    

    1. Retail customers excluding retail partnerships
    2. Based on current capital requirements excluding any confidential PRA
       buffer, if applicable

    

   Enquiries

    

   For more information, please contact:

    

   Metro Bank PLC Investor Relations

   Jo Roberts

   +44 (0) 20 3402 8900

    1 jo.roberts@metrobank.plc.uk

    

   Metro Bank PLC Media Relations

   Tina Coates / Mona Patel

   +44 (0) 7811 246016 / +44 (0) 7815 506845

    2 pressoffice@metrobank.plc.uk

    

   Teneo

   Charles Armitstead / Haya Herbert Burns

   +44 (0) 7703 330269 / +44 (0) 7342 031051

    3 Metrobank@teneo.com

    

    

                                      ENDS

    

    

   About Metro Bank

   Metro Bank services 2.7  million customer accounts  and is celebrated  for
   its exceptional customer experience. It  is the highest rated high  street
   bank for overall service quality for personal customers and the best  bank
   for  service  in-store  for  personal  and  business  customers,  in   the
   Competition and  Markets Authority’s  Service Quality  Survey in  February
   2023. Metro Bank has also been awarded “2023 Best Lender of the Year – UK”
   in the M&A Today, Global Awards,  “Best Mortgage Provider of the Year”  in
   2022 MoneyAge  Mortgage  Awards,  “Best  Business  Credit  Card”  in  2022
   Moneynet Personal Finance Awards, “Best Business Credit Card 2022”, Forbes
   Advisor, “Best  Current  Account for  Overseas  Use” by  Forbes  2022  and
   accredited as a top ten Most Loved Workplace 2022.  It was “Banking  Brand
   of The Year” at the Moneynet Personal Finance Awards 2021 and received the
   Gold Award  in the  Armed Forces  Covenant’s Employer  Recognition  Scheme
   2021.

   The community bank offers retail, business, commercial and private banking
   services, and  prides  itself  on  giving customers  the  choice  to  bank
   however, whenever and wherever they  choose, and supporting the  customers
   and communities it serves. Whether that’s through its network of 76 stores
   open seven days a week, 362 days a year; on the phone through its UK-based
   contact centres; or online through  its internet banking or  award-winning
   mobile app, the bank offers customers real choice.

   Metro Bank PLC. Registered in England and Wales. Company number:  6419578.
   Registered office: One Southampton Row,  London, WC1B 5HA. ‘Metrobank’  is
   the registered trademark of Metro Bank PLC.

   It is authorised by the  Prudential Regulation Authority and regulated  by
   the Financial  Conduct  Authority  and  Prudential  Regulation  Authority.
   Eligible 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.

   Metro Bank PLC is an independent UK  bank – it is not affiliated with  any
   other  bank  or  organisation  (including  the  METRO  newspaper  or   its
   publishers) anywhere in the  world. Please refer to  Metro Bank using  the
   full name.

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          GB00BZ6STL67
   Category Code: QRF
   TIDM:          MTRO
   LEI Code:      213800X5WU57YL9GPK89
   Sequence No.:  240860
   EQS News ID:   1622667


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:jo.roberts@metrobank.plc.uk
   2. mailto:pressoffice@metrobank.plc.uk
   3. mailto:Metrobank@teneo.com


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