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Metro Bank grows residential lending 173%

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  • 20/04/2016
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Metro Bank grows residential lending 173%
Gross mortgage lending to residential customers at Metro Bank has grown by 173% annually to reach £2.6bn in the first quarter of this year, despite continuing to operate at a loss.

Total gross lending, which includes commercial business, consumer and other loans and advances, also soared to reach £4.1bn, up from £1.8bn a year earlier.

Charles Morley, head of mortgage distribution at Metro Bank (pictured), said: “2015 was a very good year for us, we grew our business on the back of a number of aspects. From an intermediary mortgage perspective, service has been central to everything that we’ve brought to the market. Ultimately the important thing is to react to what the market tells you instead of just standing by and listening.

“We’ve noticed that a number of lenders have been talking about getting mortgage offers out within five days recently. Particularly over the last two to three months we’ve been able to do a number of day-one cases on low loan-to-value mortgages.”

During the quarter to 31 March, revenue at Metro Bank saw a 60% annual surge to £37.7m. However, the bank continued to record an underlying loss, although shrinking this on the same quarter last year by 7% to £7.9m. Its operating loss also improved quarterly, reducing from £10.2m, a change of 23%.

As of 31 March total assets at the bank were £7.4bn, up from £6.1bn on the previous quarter and £4.2bn a year earlier.

A spokeswoman confirmed that Metro Bank planned to reach profitability toward the end of this year or early 2017.

She said: “We’re making a loss at the moment because we continue to invest in our stores, our products and offering. We could make a profit by tomorrow if we stopped investing in our stores but we’ve got a growth model and we want to continue with that.”

Last month Metro completed a £400m capital raise which saw it list on the London Stock Exchange. The initial public offering has helped to create thousands of jobs at the bank with more planned.

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