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par Metro Bank Holdings PLC (isin : GB00BMX3W479)

Metro Bank Holdings PLC: Results for year ended 31 December 2023

Metro Bank Holdings PLC (MTRO)
Metro Bank Holdings PLC: Results for year ended 31 December 2023

13-March-2024 / 07:00 GMT/BST


Metro Bank Holdings plc

Full year results

Trading update 2023

13 March 2024

 

Metro Bank Holdings plc (LSE: MTRO LN)

Results for year ended 31 December 2023

 

Highlights

  •  

Statutory profit before tax of £30.5 million for the year, the first time since 2018, with a 67% year-on-year reduction in underlying loss to £16.9 million

  •  

Deposits of £15,623 million as at 31 December 2023 are up 1% from June leading to an elevated liquidity coverage ratio of 332% as at 31 December 2023

  •  

Underlying revenue grew by 5% year-on-year reflecting effective asset rotation and increased yields plus 12% growth in capital efficient fee income, whilst costs marginally reduced, creating positive operating jaws

  •  

Continued to grow personal and business current accounts, opened 246,000 accounts in the year and over 52,000 of those were in the fourth quarter

  •  

On track to deliver £50 million of annualised cost savings in Q1 2024 as previously announced, these savings have been actioned with c.1,000 colleagues, equal to 22% of headcount, leaving before mid-April

  •  

A further £30 million of annualised cost savings is expected to be delivered by the end of 2024

  •  

Remain committed to stores, including opening new stores in the North of England

  •  

Secured the capital position and extended the debt instrument maturities to 2028 or beyond

 

Daniel Frumkin, Chief Executive Officer at Metro Bank, said:

“Overall, Metro Bank performed strongly in 2023 as we continued to position the business for growth. We were pleased to return to profit on a statutory basis and deliver our best half-year results for several years. After addressing our capital position in Q4, we also launched a successful deposit campaign, with deposits totalling £16.5 million as at the end of February 2024.”

“During the year we also launched a cost saving plan which included reducing store hours and roles across the organisation. These efforts will ensure the bank is right-sized for the future, with a strong focus on both digital and great customer service.”

“Looking forward, I remain confident in our ability to be the number one community bank. The work we have undertaken this year has laid the path to become a structurally profitable business and our focus towards the SME, Commercial and specialist mortgages sector presents an exciting opportunity in an underserved area of the market. I remain grateful for the continued support of our colleagues, customers and shareholders as we embark on the next chapter of our journey”.

 

Key Financials

 

£ in millions

31 Dec

2023

31 Dec

2022

Change from

FY 2022

30 Jun

2023

Change from

H1 2023

 

 

 

 

 

 

Assets

£22,245

£22,119

1%

£21,747

2%

Loans

£12,297

£13,102

(6%)

£12,572

(2%)

Deposits

£15,623

£16,014

(2%)

£15,529

1%

Loan to deposit ratio

79%

82%

(3 ppts)

81%

(2 ppts)

 

 

 

 

 

 

CET1 capital ratio

13.1%

10.3%

280 bps

10.4%

270 bps

Total capital ratio (TCR)

15.1%

13.4%

170 bps

13.2%

190 bps

MREL ratio

22.0%

17.7%

430 bps

18.1%

390 bps

Liquidity coverage ratio

332%

213%

119 bps

214%

118 bps

 

 

£ in millions

FY

2023

FY

2022

Change from

FY 2022

H2

2023

H1

2023

Change from

H1 2023

 

 

 

 

 

 

 

Total underlying revenue1

£546.5

£522.1

5%

£260.9

£285.6

(9%)

Underlying profit/(loss) before tax2

(£16.9)

(£50.6)

67%

(£33.0)

£16.1

(305%)

Statutory profit/(loss) before tax

£30.5

(£70.7)

143%

£15.1

£15.4

(2%)

Net interest margin

1.98%

1.92%

6 bps

1.85%

2.14%

(29 bps)

Lending yield

4.72%

3.67%

105 bps

4.91%

4.50%

41 bps

Cost of deposits

0.97%

0.20%

77 bps

1.29%

0.66%

63 bps

Cost of risk

0.26%

0.32%

(6 bps)

0.34%

0.18%

(16 bps)

Underlying EPS

(8.4p)

(30.5p)

22.1p

(12.2p)

7.8p

(20.0p)

Tangible book value per share

£1.40

£4.29

(67%)

£1.40

£4.42

(68%)

 

  1. Underlying revenue excludes grant income recognised relating to the Capability & Innovation fund and the gain relating to the capital raise and refinancing
  2. Underlying loss before tax is an alternative performance measure and excludes impairment and write-off of property, plant & equipment (PPE) and intangible assets, transformation costs, remediation costs, costs incurred as part of the holding company insertion and impacts of the capital raise and refinancing

 

Investor presentation

A presentation for investors and analysts will be held at 9AM (UK time) on Wednesday 13 March 2024. The presentation will be webcast on:

https://webcast.openbriefing.com/metrobank-mar24/

For those wishing to dial-in:

From the UK: +44 800 358 1035

From the US: +1 855 9796 654

Access code: 439242

Other global dial-in numbers: https://www.netroadshow.com/events/global-numbers?confId=59913

 

 

Financial performance for the year ended 31 December 2023

 

Deposits

£ in millions

31 Dec

2023

31 Dec

2022

Change from

FY 2022

30 Jun

2023

Change from

H1 2023

 

 

 

 

 

 

Demand: current accounts

£5,696

£7,888

(28%)

£7,106

(20%)

Demand: savings accounts

£7,827

£7,501

4%

£7,218

8%

Fixed term: savings accounts

£2,100

£625

236%

£1,205

74%

Deposits from customers

£15,623

£16,014

(2%)

£15,529

1%

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