Metro Bank reveals increase in lending, shares rise

metro bank

Metro Bank shares (LON: MTRO) surged by over 4% on Wednesday as the group revealed a 2% increase in lending.

In an update for the third quarter, the lender said that it handed out £15.09bn in loans for the three months to 30 September.

Metro Bank provided £1.3bn through the Bounce Back Loans scheme to over 33,000 customers, as well as report growth in loans for small and medium-sized businesses.

In the update, the lender did not provide an update for its bottom line. For the first half of the year, Metro Bank reported a £240m loss.

The bank did say that activity levels are continuing to gradually recover post-lockdown. New account openings tracking higher at around 90% of pre-pandemic levels.

Daniel Frumkin, the chief executive, said: “In a challenging environment, Metro Bank has delivered a good performance with loan growth reflecting our support for government-backed lending schemes.

“We have made further progress against the strategic priorities we set out at the beginning of 2020, completing the acquisition of RateSetter in the quarter and launching new initiatives which enable us to meet more customer needs. The continued dedication of our colleagues and their focus on excellent customer service underpins our position as the UK’s best community bank.”

Metro Bank shares (LON: MTRO)  are trading 1.45% higher at 60,36 (0934GMT).