Source: Metro Bank
Metro Bank PLC (LSE: MTRO LN) Results for Year ended 31 December 2022,
Underlying profit in Q4 achieved as a result of the bank’s commitment to strong cost control and the successful balance sheet optimisation strategy.
Underlying revenue increased by 31% to £522.1 million reflecting the shift in deposit and asset mix, the impact of the higher Bank of England base rate, and a recovery in customer activity.
Underlying costs reduced 3% to £532.8 million despite inflationary pressures, reflecting management actions to control cost and leverage the fixed cost base for profitable growth.
Operating jaws3 for 2022 were 34%.
Underlying loss before tax for the year improved by 70% to £50.6 million as a result of the strong income growth, cost discipline and prudent risk management.
Statutory loss before tax of £70.7 million, improved 71%, as legacy issues, and their associated remediation costs, concluded.
Legacy PRA and FCA issues addressed regarding investigations into historical RWA reporting, and the OFAC investigation was closed during the year.
Targeting mid-single digit ROTE by 2024.
Resuming store expansion in the important economic areas and communities that make up the North of England, supported by funding from the Capability and Innovation Fund.
Continued commitment to customers, communities and colleagues, voted the highest rated high street bank for overall service quality for personal customers and the best bank for service in-store for personal and business customers4 for the 10th time in a row. Unique culture provides local communities with the support they need and builds long-lasting and personal relationships with customers.
Pillar 2A capital requirement reduced to 0.50% in June 2022, further reduced to 0.36% effective January 2023.
The Resolution Directorate of the Bank of England adjusted the bank's existing £250 million 5.5% Tier 2 Notes to remain eligible for MREL until 26 June 2025, following implementation of the holding company.
2023 is a transitional year and the bank will focus on serving customers and maintaining cost discipline whilst continuing to invest in infrastructure and build sustainably.
Operating jaws calculated as percentage change in underlying revenue growth less percentage change in underlying cost growth.
Competition and Market Authority’s Service Quality Survey February 2023.
Daniel Frumkin, Chief Executive Officer at Metro Bank, said:
“I’m pleased with Metro Bank’s performance over the past year and the successful completion of our transformation plan. We returned to profitability, resolved our legacy issues and further strengthened the foundations for future sustainable growth. While I remain confident in the underlying business, material headwinds do exist, including the macro-economic environment and increasing competition for liabilities. We have established the basis to transition back to being a profitable growth engine, committed to serving our communities through our network of stores, digital offerings and stand-out customer service, as seen in the latest CMA results.”