Metro Bank delivers flat QoQ performance

High street lender Metro Bank has reported a broadly flat quarter-on-quarter performance for the three months ended 31 March but maintained that it remained on track to deliver on its strategic plan.

Metro Bank said on Wednesday that total deposits of £16.49bn were flat during the quarter, with growth across business and retail customers' instant access and current accounts continuing, as well as a further reduction in higher-cost fixed-term deposits.

The London-listed group noted that Q1 total net loans were also broadly flat over the period at £12.34bn, with continued strong growth in consumer lending and specialist mortgages offsetting the attrition of lower-yielding residential mortgages and commercial term loans.

Credit impairments were said to have remained "benign" and the loan to deposit ratio was flat at 75% following stable loan and deposit balances.

Chief executive Daniel Frumkin said: "Metro Bank has delivered a solid quarter, as we continue to accelerate the shift of our balance sheet, with improved yields achieved from specialist mortgages and unsecured lending, alongside lower cost of deposits and tight cost control.

"We remain focused on executing our plans and returning the bank to profitable growth whilst supporting our customers, communities, and colleagues in what continues to be a changing macro-economic environment."

As of 0810 BST, Metro Bank shares were up 2.17% at 87.87p.