Metro Bank generates a profit after removing a thousand jobs.

For the first time since 2018, Metro Bank declares statutory profit before tax of £30.5 million for the year, with an underlying loss that is 67% lower year over year at £16.9 million.

Madilyn Swift

March 13, 2024

2Min Reads

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Banking

*As of December 31, 2023, deposits totaling £15,623 million were 1% higher than in June, resulting in an increased liquidity coverage ratio of 332%.

*Effective asset rotation, higher yields, and a 12% increase in capital efficient fee income contributed to the 5% annual growth in underlying revenue, while somewhat lower costs produced positive operating margins.

* Maintained to expand current accounts for individuals and businesses; 246,000 new accounts were established throughout the year, with more than 52,000 of those coming in the fourth quarter.

*As previously reported, the company is on schedule to generate £50 million in annualized cost reductions in Q1 2024. These savings have been implemented by terminating around 1,000 colleagues, or 22% of the workforce, by mid-April.

*By the end of 2024, additional annualized cost savings of £30 million are anticipated.

* Continue to be dedicated to your stores, including opening new ones in the North of England.

*Protected the position of capital and prolonged the debt instrument maturities until 2028 or later

Metro Bank Chief Executive Officer Daniel Frumkin stated:

"In general, Metro Bank did well in 2023 as we kept setting up the company for expansion. We achieved our greatest half-year results in a number of years and were happy to turn a profit on a statutory basis. We started a successful deposit drive after resolving our capital position in Q4 of 2024, and as of the end of February 2024, deposits were at their highest level in three years.

"We also introduced a cost-cutting initiative during the year, which involved cutting roles and store hours throughout the entire company. Through these initiatives, the bank will be properly sized for the future, emphasizing both excellent customer service and digital technology.

"Going ahead, I still have faith that we can top the community bank rankings. Our efforts this year have paved the way for us to become a structurally successful company, and our emphasis on the SME, commercial, and specialty mortgage markets offers a promising prospect in a market that is currently underserved. As we start the new chapter of our adventure, I am still appreciative of the support that our customers, stockholders, and coworkers have given us.