- 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
|
£ in millions |
31 March 2023 |
31 December 2022 |
Change from Q4 2022 |
31 March 2022 |
Change from Q1 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 Retail1 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.”
- Retail customers excluding retail partnerships
- Based on current capital requirements excluding any confidential PRA buffer, if applicable