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Metro Bank trims losses as turnaround plans pick up pace


Metro Bank (LSE:MTRO) shares rose in early morning trade as the bank trimmed losses and continued to make progress toward turnaround goals.

The bank recorded underlying losses of £179.3mln in 2021, a 37% reduction on 2020 losses, with momentum made in the second half of last year.

Metro Bank (LSE:MTRO) CEO Daniel Frumkin said the results showed turnaround plans to rejuvenate finances, announced in February 2020, were working.

“Two years into the turnaround, our strategy is delivering meaningful results as we move towards profitability”, said Frumkin.

“In a changing macro-economic environment, we have accelerated the shift of our balance sheet, with improved yields and lower cost of deposits.

“There is still more to do, but our focus on delivering higher margins through unsecured and specialist mortgage lending, as well as tight cost control, is enabling transformational change.”

Revenues rose 17% to £39.9mln following a recovery in consumer activity.

The bank placed emphasis on its performance in the latter part of the year, with fourth quarter costs of deposits, lending yield and net interest margin all stronger than the 2021 average.

Metro Bank was forced to reevaluate its structure after announcing in 2019 a lack of sufficient capital to meet regulatory requirements, causing shares to plunge 42%.

It’s outlook for 2022 focused on higher balance sheet growth, with low single digit percentage reduction in total underlying operating expenses.

The bank’s share price was down 0.57% to 93.22p after initial gains.

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