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(Alliance News) - Metro Bank PLC on Wednesday reported a reduced loan book in the first quarter while deposits increased with continued product mix improvement.
The London-based bank reported a loan book of GBP12.05 billion at March 31, down 17% from GBP14.51 billion a year prior and 0.3% lower than GBP12.09 billion at December 31.
"[This was due to] strong growth in consumer lending supported by the integration of the RateSetter platform and continued growth in capital-efficient government-supported business lending, offset by the attrition of lower-yielding residential mortgages and commercial term loans," the bank said.
Deposits for the first quarter increased 13% to GBP16.41 billion from GBP14.55 billion a year prior, with continued mix improvement driven by growth across business and retail customers' instant access and current accounts, the company said.
Maintaining a high-quality deposit mix rather than expansion remains the focus for 2021, Metro Bank added.
Chief Executive Daniel Frumkin said: "Metro Bank has delivered a solid first quarter, with continued improvement in deposit mix. We are also beginning to see progress across our loan book, with strong growth in consumer lending and specialist mortgages as we focus on assets delivering higher risk-adjusted returns. Our turnaround strategy is ongoing and I remain incredibly grateful for how colleagues have continued to step-up to deliver for our customers and communities during these challenging times."
Metro Bank shares were up 0.9% at 116.50 pence each in London on Wednesday.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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