Daniel Frumkin, the chief executive of Metro Bank, said the lender “continued to make strong progress” during the quarter, including a partnership with Infosys to “create a simpler, more agile and digitally enabled bank for the future”.
Frumkin added: “The bank returned to profitability in October, in line with guidance, and thanks to our continued emphasis on cost discipline and balance sheet management. Net interest margin improved, driven by our asset rotation into niche and under-served markets, and the successful completion of the mortgage portfolio sale to NatWest.
“We have positive momentum moving forward, with strong cost control and a robust pipeline supporting our pivot towards higher-yielding commercial, corporate, SME and specialist mortgages – areas where our established relationship banking model positions us to win and create new fans.”
In Q3, Metro Bank’s total net loans fell 28% year-on-year to £9.1bn. This was also down 22% compared to the £11.5bn figure as of 30 June this year.
The lender said this reflected the “successful” disposal of a £2.5bn mortgage portfolio as it pivots towards “higher-yielding commercial, corporate, SME and specialist mortgages”.
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In its half-year results, Metro Bank said it wanted to reduce its mortgage lending balances.
