Metro Bank profits jump 197% in third quarter

Metro Bank profits jump 197% in third quarter

Metro Bank (LON: MTRO) has released impressive results for the third quarter of 2018, with profits jumping 197%.

Profits in the bank jumped from £13.2 million in the same period last year to £39.2 million in the past three months,

Metro Bank also added 102,000 new customers in the most previous quarter, bringing the total number of new customers added just this year to 300,000.

The total number of customers has now passed 1.5 million and the lender has 60 stores.

“Nine month and third quarter 2018 results demonstrate continued growth across Metro Bank,” said the bank.

“Recent competitive trends in the mortgage market, however, have persisted despite the base rate increase in August as we have continued to focus on high quality growth of low-risk assets,” it added.

The group’s chief executive Craig Donaldson said: “The first nine months of 2018 show another strong performance from Metro Bank.”

“We delivered double-digit growth in deposits, record lending growth year-on-year and for the fourth successive quarter exceeded £1 billion in net lending.”

“Profit trebled to £39.2 million and we welcomed over 300,000 new customer accounts.”

However, the lender’s net interest margin fell from 1.94% to 1.77%. Investors did not take this news lightly and shares fell over 11% lower to 2,276p.

Barclays (LON: BARC) also posted strong results for the third quarter, with profits up to £1.5 billion in the three months to September 30, which is up from £1.1 billion in the same period a year previously.

Deutsche Bank (ETR: DBK) had less impressive results, with profits falling by 65%.

Octavio Marenzi, chief executive of consultancy Opimas, said: “There was weakness right across all lines of business and the return on equity achieved of only 1.3% is pretty awful.”

“It does seem that Deutsche Bank is starting to look at headcount reductions more seriously, particularly at the bank’s troubled Corporate and Investment Bank, with headcount down 3%, but this kind of reduction looks homeopathic at a time when more radical surgery is needed.“