REG - Metro Bank PLC - Preliminary Results for Full Year 2017 <Origin Href="QuoteRef">MTRO.L</Origin> - Part 3

Metro Bank HoldingsAnnouncement

21/02/2018 07:05

- Part 3: For the preceding part double click  ID:nRSU4561Fb 

repayments during the year                                               (262)         (59)   
 Loans outstanding at 31 December                                              2,957         3,191  
 Interest expense on loans payable to the bank                                 80            82     
 
 
There were seven (31 December 2016: nine) loans outstanding at 31 December
2017 totalling £3.0m (31 December 2016: £3.2m). Of these, six are residential
mortgages and one is an unsecured loan; all loans were provided on normal
commercial terms which can be found on our website
(www.metrobankonline.co.uk). 
 
In addition to the loans detailed above, the bank has issued credit cards and
granted overdraft facilities on current accounts to directors and key
management personnel. At 31 December 2017 there was only one overdrawn current
account (£296) to directors and key management personnel and all outstanding
credit card balances were repaid in January 2017. 
 
Credit card balances outstanding at 31 December were as follows: 
 
                                          2017          2016  
                                          £'000  £'000  
 Credit cards outstanding at 31 December  27            10    
 
 
Deposit balances outstanding at 31 December were as follows: 
 
                                                                                  2017            2016   
                                                                                  £'000    £'000  
 Deposits outstanding at 1 January                                                5,193           4,544  
 Deposits relating to persons and companies no longer considered related parties  (2,967)         -      
 Deposits relating to new key management personnel                                44              -      
 Net amounts deposited                                                            1,163           649    
 Deposits outstanding at 31 December                                              3,433           5,193  
 
 
12.  Related party transactions (continued) 
 
Other transactions with related parties 
 
The following transactions were carried out with related parties: 
 
                                                                                 2017          2016   
                                                                                 £'000  £'000  
 Architectural design services                                                   4,135         2,635  
 Branding, marketing and advertising                                             513           521    
 Total purchase of services with entities connected to key management personnel  4,648         3,156  
 Amounts outstanding as at 31 December owed by Metro Bank                        23            382    
 
 
Architecture, design and branding services are provided by InterArch, Inc.
("InterArch"), a firm which is owned by Shirley Hill, the wife of Vernon W.
Hill, II, the Non-Executive Chairman. 
 
In order to ensure that the terms of the InterArch arrangements are consistent
with those that could be obtained from an independent third party and in
accordance with the Articles, the contractual arrangements with InterArch are
subject to periodic review by our Audit Committee using benchmarking reviews
conducted by independent third parties. The Audit Committee have concluded
that contracts for services with InterArch are at arm's length and are at
least as beneficial as those which could be obtained in the market from an
alternative supplier. 
 
Architectural design services 
 
InterArch provide various architectural design services, including pre-design,
architectural design, interior design, facilities coordination, construction
management, landscape architectural, signage, security design and layout and
procurement services. The fee structure for each project is based on a fixed
percentage of projected hard costs. Certain additional services are provided
on an hourly basis. The contract for architectural design services is
currently under renegotiation and the Audit Committee has taken steps to
ensure that it will continue to be at arm's length as part of the
renegotiation process. 
 
Branding, Marketing and Advertising 
 
InterArch also provide branding, marketing and advertising services. The
agreement terminated on 31 December 2017 and a new agreement was signed in
January 2018 covering the period up to 31 December 2018. 
 
13.  Post Balance Sheet Events 
 
There have been no reportable post balance sheet events. 
 
Forward looking statements 
 
This announcement may include statements that are, or may be deemed to be,
forward-looking statements. Forward-looking statements typically use terms
such as "believes", "projects", "anticipates", "expects", "intends", "plans",
"may", "will", "would", "could" or "should" or similar terminology. Any
forward-looking statements in this announcement are based on the Company's
current expectations and, by their nature, forward-looking statements are
subject to a number of risks and uncertainties, many of which are beyond the
Company's control, that could cause the Company's actual results and
performance to differ materially from any expected future results or
performance expressed or implied by any forward-looking statements. As a
result, you are cautioned not to place undue reliance on such forward-looking
statements. Past performance should not be taken as an indication or guarantee
of future results, and no representation or warranty, expressed or implied, is
made regarding future performance. No assurances can be given that the
forward-looking statements in this announcement will be realised. The Company
undertakes no obligation to release the results of any revisions to any
forward-looking statements in this announcement that may occur due to any
change in its expectations or to reflect events or circumstances after the
date of this announcement and the Company disclaims any such obligation. 
 
ENDS 
 
About Metro Bank 
 
Metro Bank is the revolution in British banking. It is celebrated for its
exceptional customer experience and its trusted products, and was awarded
'Most Trusted Financial Provider' at the Moneywise Customer Service Awards
2017, as well as 'Best Financial Provider' at the Evening Standard Business
Awards 2017 and 'Bank of the Year' at the CityAM Awards 2016. 
 
Offering retail, business, commercial and private banking services, it prides
itself on using technology to give customers the choice to bank however,
whenever and wherever they choose. Whether that's through its growing network
of stores open seven days a week, from early in the morning to late at night,
362 days a year; on the phone through its UK-based 24/7 contact centres manned
by people not machines; or online through its internet banking or
award-winning mobile app. 
 
The bank employs over 3,000 colleagues and is headquartered in Holborn,
London. 
 
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. 
 
It is authorised by the Prudential Regulation Authority and regulated by the
Financial Conduct Authority and Prudential Regulation Authority. Most 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. 
 
This information is provided by RNS
The company news service from the London Stock Exchange