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Metro Bank books £10.8M FY'17 profit, eyes up to 160 branches by 2023


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Metro Bank books £10.8M FY'17 profit, eyes up to 160 branches by 2023

Metro Bank Plc reported its first full-year net profit since its launch in 2010, with the preliminary 2017 after-tax figure coming in at £10.8 million, compared to a year-over-year loss of £16.8 million.

Revenue rose 51% to £293.8 million from £195.1 million a year earlier and lending grew 64% to £9.63 billion from £5.87 billion in 2016.

The bank's net interest income was £241.0 million, up 56% from £154.2 million a year ago. Net interest margin, however, dropped to 1.93% from 1.97% in 2016.

Return on equity stood at 1.2% at the end of 2017; the bank is expecting an ROE of about 14% in 2020 and 17% to 19% in 2023.

Metro Bank's other targets for 2023 include attracting deposits of £50 billion to £55 billion, cutting its cost-to-income ratio to between 55% and 58% from 90% in 2017, and increasing its branch network to between 140 and 160 branches from 55 in 2017.

Deposits increased 47% to £11.67 billion at 2017-end from £7.95 billion at 2016-end, while the loan-to-deposit ratio rose to 82% from 74% in 2016.

Metro Bank CEO Craig Donaldson said the firm is expecting to raise fresh capital in 2019 or late 2018, the Financial Times reported, noting that its common equity Tier 1 capital ratio had fallen to 15.3% in 2017 from 18.1% in 2016.