FY 2018 results preview (unaudited)
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FY 31 December 2018 (unaudited) |
FY 31 December 2017 (audited) |
Change From Full Year 2017 |
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Assets |
£21.7bn |
£16.4bn |
32% |
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Loans |
£14.2bn |
£9.6bn |
48% |
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Deposits |
£15.7bn |
£11.7bn |
34% |
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Loan to Deposit ratio |
91% |
82% |
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Underlying1 profit before tax |
£50m |
£21m |
138% |
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Underlying1 EPS (basic) |
40p |
19p |
111% |
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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 totalled £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, 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.”
This Announcement contains (or may contain) certain forward-looking statements with respect to certain of the Company's current expectations and projections about future performance, anticipated events or trends and other matters that are not historical facts. These forward-looking statements, which sometimes use words such as "aim", "anticipate", “believe", "intend", "plan" "estimate", "expect" and words of similar meaning, include all matters that are not historical facts and reflect the directors' beliefs and expectations and involve a number of risks, uncertainties and assumptions that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. These statements are subject to unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Statements contained in this Announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The information contained in this Announcement is subject to change without notice and, except as required by applicable law, the Company does not assume any responsibility or obligation to update publicly or review any of the forward-looking statements contained herein. You should not place undue reliance on forward-looking statements, which speak only as of the date of this announcement. No statement in this announcement is or is intended to be a profit forecast or profit estimate or to imply that the earnings of the Company for the current or future financial years will necessarily match or exceed the historical or published earnings of the Company. The price of shares and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of the shares. Past performance is no guide for future performance and persons reading this announcement should consult an independent financial adviser.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR") and was authorised for release by David Arden, Chief Financial Officer.