Compared to the 12 months to 2021, this was a rise of 75 per cent on the £1.2bn recorded in 2021.
The proportion of new business with a loan to value over 80 per cent has reduced from 41 per cent in 2021 to 18 per cent in 2022.
The bank’s mortgage loan book grew by 14 per cent over the period from £6.7bn to £7.6bn and remains the largest component of its lending book at 58 per cent.
During the year, the bank received more then £4bn in mortgage applications, a rise of 182 per cent on 2021.
Underlying net interest income rose by 37 per cent to £404.2m up from £295.7m in 2021 driven by an increase in net interest margin which rose 52 basis points to 1.92 per cent compared to 1.40 per cent in the previous year.
Growth of its mortgage and consumer finance books together with the increase in the Bank of England base rate were some of the main reasons behind the increase in net interest income.
The bank also noted: “The impact of high inflation, exacerbated by the Russian invasion of Ukraine has led to deterioration in the economic outlook during the year which, when combined with the larger lending balance, means we have increased the expected credit loss provision. Despite the increases in provisions, the portfolio is well placed to provide resilience in the face of the economic outlook.”
Metro Bank: ‘Confident…but material heawinds exist’
Metro Bank made a statutory loss before tax of £70.7m, an improvement of 71 per cent on 2021 which it said was down to legacy issues and associated remediation costs being brought to a conclusion.
On an underlying basis, the bank returned to profitability in the final quarter of last year.
Daniel Frumkin, chief executive at Metro Bank, said: “I’m pleased with Metro Bank’s performance over the past year and the successful completion of our transformation plan. We returned to profitability, resolved our legacy issues and further strengthened the foundations for future sustainable growth.
“While I remain confident in the underlying business, material headwinds do exist, including the macro-economic environment and increasing competition for liabilities.”
