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Metro Bank mortgage lending rises 73% year-on-year

  • 27/07/2017
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Metro Bank mortgage lending rises 73% year-on-year
Residential mortgage lending at Metro Bank has risen 73% since in a year, reaching £4.95bn at the end of June.

That’s up from £2.85bn at the same time last year and an increase of 23% on the first quarter of 2017, when lending was £4.02bn.

The figures include the purchase of a portfolio of UK mortgages from US investment firm Cerberus on 2 June for £0.6bn. The purchased portfolio consists predominantly of buy-to-let mortgages and has a similar credit risk profile to the organic book.

The bank’s total loans and advances to customers at 30 June 2017 were £7.75bn, up 32% from £5.87bn at the end of 2016. Metro said this was driven by expansion of the bank’s residential mortgage intermediary network as well as relationships in the commercial lending team.

Pre-tax profits doubled in the quarter to £4m, from £2m in Q1. Deposits from customers are up 49% year on year to £9.8bn and the bank has passed the one million customer account mark.

Craig Donaldson (pictured), the bank’s chief executive, said: “This has been another great half year for Metro Bank with extremely strong organic lending supported by a c£600m book purchase increasing our loan to deposit ratio to 79%.

“This, taken together with continued strong deposit growth at a reducing cost of deposits, have led to us doubling our profits quarter on quarter, and reporting our fourth consecutive quarter of profitability.”

Vernon Hill, chairman and founder at Metro Bank, added: “Our ability to meet the banking needs of business, commercial and retail customers in and outside London is proving to be an attractive proposition for British consumers and businesses alike. In the last six months alone we have opened a further 130,000 accounts.”

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