Metro Bank PLC
LSE:MTRO
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Metro Bank PLC
Metro Bank PLC engages in the provision of retail and commercial banking services. The firm is a deposit-taking and lending institution with a focus on retail and small and medium size commercial customers. The company offers personal and business banking services. Its personal banking services include bank accounts, savings, borrowing, mortgages, insurance, safe deposit boxes and private banking, among others. Its business banking services include business accounts, deposit accounts, borrowing options and insurance, among others. Its subsidiaries include SME Invoice Finance Limited, SME Asset Finance Limited, Retail Money Market LTD, RateSetter Trustee Services Limited, RateSetter Motor Limited, Security Trustee Services Limited and Vehicle Stocking Limited, among others.
Metro Bank PLC engages in the provision of retail and commercial banking services. The firm is a deposit-taking and lending institution with a focus on retail and small and medium size commercial customers. The company offers personal and business banking services. Its personal banking services include bank accounts, savings, borrowing, mortgages, insurance, safe deposit boxes and private banking, among others. Its business banking services include business accounts, deposit accounts, borrowing options and insurance, among others. Its subsidiaries include SME Invoice Finance Limited, SME Asset Finance Limited, Retail Money Market LTD, RateSetter Trustee Services Limited, RateSetter Motor Limited, Security Trustee Services Limited and Vehicle Stocking Limited, among others.
Turnaround Complete: Metro Bank declared its operational turnaround complete, achieving underlying profitability in Q4 2022, ahead of previous guidance.
Revenue & Cost Control: Income grew by 31% year-on-year, while costs fell by 3%, resulting in strong operating jaws of 34%.
NIM Improvement: Net interest margin strengthened from 0.94% after the mortgage sale to 2.22% at 2022 exit, reflecting balance sheet repositioning.
Mid-Single Digit RoTE Target: Management is guiding to mid-single-digit return on tangible equity (RoTE) by 2024, with both reported and underlying measures expected to align.
Deposit Mix & Growth: Core deposits now make up 96% of total deposits, with strong account growth in both personal and business current accounts.
Cost of Risk & Provisioning: Cost of risk is expected to stay around 32 basis points, with no current signs of credit stress but continued cautious provisioning.
Capital & Regulatory Progress: Metro Bank remained above regulatory capital minima in 2022, with further improvements in regulatory requirements and supportive engagement from regulators.
