Metro Bank PLC says deposits grew in March but lending curtailed
Net loans were down £169mln over the quarter as the lender said it undertook “proactive management of lending growth”
PLC () said loans shrank 1% and deposits grew 1% in the first quarter of 2020 compared the last quarter of 2019
Total deposits ended March at £14.5bn, up £77mln since the end of December as retail savings accounts grew but fixed term deposit rates declined to “more normalised levels”.
Deposits remained stable in April, the challenger bank added, with all of its ‘stores’ having remained open through the lockdown and new processes put in place vulnerable customers to access cash and call.
Net loans of £14.5bn were down £169mln over the quarter as the lender said it undertook “proactive management of lending growth” and the loan to deposit ratio reduced to 100% from 101% at the end of last year.
Metro Bank said its capital ratios and minimum requirement for own funds and eligible liabilities (MREL) ratio both “remain in excess of regulatory minima following close control of growth in risk-weighted assets”, but gave no details in the trading update.
The liquidity coverage ratio closed the quarter above the 197% seen at end-December.
Unlike the UK’s big five high street banks, the small cap lender and its fellow challengers are not required to release full quarterly results.
Metro Bank shares fell 5% to 82.06p on Wednesday morning, down more than 60% since the start of the year.
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