Metro Bank posted its first set of results - a loss of £11 million
The bank cited increasing revenues, deposits and assets as factors in its favour going forward despite the loss.
"I am particularly pleased with the momentum and quality of our lending; net lending increased by 125% per cent year on year to £4.1 billion driven by strong growth in both residential mortgages and commercial lending," CEO Craig Donaldson said in a statement on Wednesday.
Revenue increased 11% quarter-on-quarter to £37.7 million and deposits increased 15% to £5.9 billion. While the bank is much smaller than its peers, it is better capitalised, citing a capital buffer of 25% of assets. Bigger banks generally have a capital ratio of about half that.
Metro Bank cut the size of its public offering of shares in February as turmoil gripped the market.
The bank raised £400 million in its March IPO, down from £500 million, cutting the price of its shares to £20 from £24. Metro Bank said the IPO cost £3.2 million in fees.
Here's the share chart:
Metro Bank, set up in 2010 by American entrepreneur Vernon Hill, is yet to turn a profit. The lender made a post-tax loss of £10.1 million in the fourth quarter last year, slightly less than the £10.7 million loss in the previous quarter.