You are here: Home -

Metro Bank’s share price sinks as lender warns on profits

by:
  • 23/01/2019
  • 0
Metro Bank’s share price has plunged by as much as 29%, after the bank said slowing growth would hit its profits.

 

The lender reported a 48% increase of total customer loans to £14.2bn in the year to the end of 2018, from £9.6bn in 2017.

Underlying profit before tax came in at £50m, up 138% year on year. However, this softened in the final quarter of 2018, Metro added.

At the same time, risk weighted assets – which determines the capital requirements of the bank – increased to £8.9bn, according to the trading update.

Metro said the rise had been driven by loan growth and the adjustment of certain commercial loans secured on property, as well as specialist buy-to-let loans to large portfolio landlords.

Total capital ratio, which measures a bank’s strength, is expected to have fallen to 15.8% as of December 31 2018, with Metro to give a full update in its final results next month.

Mortgage lending at the bank will also be detailed in the full year reports.

Chief executive Craig Donaldson (pictured) 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.”

In the third quarter of 2018, Metro reported a 58% annual uplift in residential mortgage lending.

Tags

There are 0 Comment(s)

You may also be interested in

Read previous post:
NatWest reviewing maximum age limit but no change imminent – video [5:06]

NatWest has revealed it has been considering raising the maximum lending age for its products but it wants to see...

Close