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(Alliance News) - Metro Bank PLC on Wednesday said it was feeling the lingering effects of the pandemic, as the mid-cap lender remained in the red despite an increase in underlying revenue and deposits.
In the six months ended June 30, London-based Metro Bank saw its pretax loss narrow to GBP138.9 million from GBP240.6 million a year prior. The loss widened, however, from the GBP71.0 million loss for the six months to end of 2020.
The company's underlying loss before tax also narrowed year-on-year, to GBP110.0 million from GBP183.4 million.
First half underlying revenue meanwhile hit GBP179.8 million, up 17% from GBP153.3m a year before.
Total deposits grew by GBP500 million, rising 3.4% to GBP16.62 billion during the first half from GBP16.07 billion at the end of 2020.
Shares in Metro Bank were trading up 2.6% at 98.21 pence each in London on Wednesday morning.
"The business performance is in line with that envisaged in our turnaround plan, even with the additional headwinds and capital drain caused by Covid-19," the company said.
Metro Bank said net fee and other income fell in the first half, with customer activity remaining subdued due to lockdown measures and other social restrictions.
The company said its second half outlook depends on the pace of recovery after the easing of pandemic-related restrictions.
"The outlook is undoubtedly more positive compared to the full year, primarily due to the UK's successful vaccination programme and the gradual lifting of restrictions, but it remains unclear if and how the recovery will develop and as such we remain cautious in our approach," Metro Bank added.
By Scarlett Butler; scarlettbutler@alliancenews.com
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