Third Quarter 2024 Trading Update
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Trading Update Q3 2024
Metro Bank Holdings PLC (LSE: MTRO LN) (“Metro Bank”)
During October, Metro Bank was profitable on an underlying basis and profits are in line with guidance for 2025 of mid-to-upper single digit RoTE
NIM improved to 2.48% during October, up 84bps since H1 2024
This delivers the 2024 guidance previously provided. Metro Bank reconfirms all forward guidance provided at half-year results
Third Quarter 2024 Trading Update
| £ in millions | 30 September 2024 | 30 June 2024 | Change from H1 2024 | 30 September 2023 | Change from Q3 2023 |
|---|---|---|---|---|---|
| Assets | £20,804 | £21,489 | (3%) | £21,606 | (4%) |
| Loans | £9,059 | £11,543 | (22%) | £12,513 | (28%) |
| Deposits | £15,084 | £15,726 | (4%) | £15,612 | (3%) |
| Loan to deposit ratio | 60% | 73% | (13pp) | 80% | (20pp) |
Total net loans as at 30 September 2024 were £9.1 billion, down 22% compared to half year (30 June 2024: £11.5 billion), reflecting the successful completion of the £2.5[1] billion mortgage portfolio disposal. The bank continues to strategically reposition its balance sheet towards higher yielding commercial, corporate, SME and specialist mortgages.
Customer deposits of £15.1 billion at 30 September 2024, down £1.4 billion on February 2024 peak of c.£16.5 billion (30 June 2024: £15.7 billion), reflect the continued focus on improving cost of deposits.
As separately announced today, the Financial Conduct Authority has completed its enquiries regarding Metro Bank’s historic financial crime systems and controls.
Daniel Frumkin, Chief Executive Officer of Metro Bank, said:
“Metro Bank continued to make strong progress during the third quarter, including the announcement of our collaboration with Infosys to create a simpler, more agile and digitally enabled bank for the future.”
“The bank returned to profitability in October, in line with guidance, and thanks to our continued emphasis on cost discipline and balance sheet management. NIM improved, driven by our asset rotation into niche and underserved markets, and the successful completion of the mortgage portfolio sale to NatWest.”
“We have positive momentum moving forward, with strong cost control and a robust pipeline supporting our pivot towards higher yielding commercial, corporate, SME and specialist mortgages – areas where our established relationship banking model positions us to win and create new FANS.”
[1] Cut-off as at 31-Mar-24
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