Metro Bank has reported 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.
The return to profit came after the lender was rescued from potential collapse by a major refinancing package in October 2023.
As part of restructuring efforts, Metro Bank is on track to deliver £50 million of annualised cost savings in Q1 2024, which have been actioned by 1,000 job cuts by mid-April, equal to 22% of the bank’s headcount.
A further £30 million of cost savings is expected to be delivered by the end of 2024 through the transition to a more cost-effective model with the automation of some processes and reduced opening times at branches.
Underlying revenue grew by 5% year-on-year, which the bank said reflected effective asset rotation and increased yields plus 12% growth in capital efficient fee income.
Personal and business current accounts continued to grow with 246,000 accounts opened in the year, with over 52,000 in the fourth quarter.
Daniel Frumkin (pictured), 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 as at the end of February 2024 at the highest level in three years.
“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.”
