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Metro Bank posts first full year profit

Metro Bank posts first full year profit

Metro Bank has reported its first annual profit, eight years after it launched.

The bank - the first high street bank to launch in the UK for 150 years - posted a statutory profit of £10.8m for 2017, compared with the £16.8m loss it posted the previous year.

Meanwhile total revenue was up 51 per cent to £293.8m and its deposits grew by £3.7bn - up 47 per cent year-on-year.

Metro Bank also reported record lending growth of £3.8bn - up 64 per cent.

Craig Donaldson, chief executive of Metro Bank, said: "2017 has been a fantastic year for Metro Bank.  We've reported our first full year of profitability, had continued exceptional growth in both deposits and lending, and have the privilege now of looking after over one million customer accounts.

"As we enter new markets across the country, we will continue to create more jobs and bring real competition and choice for personal and business banking customers."

Metro Bank said during 2017 it had created 600 jobs and planned to create another 900 during 2018 as it continued to expand.

Over the course of 2017 Metro Bank lent £6.2bn in mortgage loans - up from £3.6bn for the previous year.

The bank's loan to deposit ratio increased to a record 82 per cent following its record lending both to commercial and residential mortgage customers.

But its net interest margin - the difference between the interest generated from mortgages to that paid out on deposits - fell to 1.93 per cent from 1.97 per cent.

damian.fantato@ft.com