(Alliance News) - Metro Bank PLC said Wednesday it has proved its "resiliency" in the first quarter, despite a drop in its loan book.
At March 31, Metro's loan book stood at GBP14.51 billion, down 4.4% from GBP15.17 billion at the same point a year before and down 1.2% from GBP14.68 billion at the end of 2019.
The dip was attributed to "proactive management of lending growth".
The lender said its digital services and back office functions have continued to "perform well" in the first quarter amid the Covid-19 pandemic.
Chief Executive Daniel Frumkin said: "Our colleagues have shown incredible commitment to serving our customers and communities in the face of the challenges caused by Covid-19, and we are doing everything we can to meet customer needs through all our channels. Despite the unfolding situation, I'm pleased that deposits continued to grow in the first quarter. Our ambition to become the UK's best community bank has never been more important, and we've made early progress on the strategic initiatives announced earlier in the year."
Customer deposits ended the first quarter at GBP14.55 billion, down 3.6% on a year before but up slightly from the end of 2019.
The rise since December was attributed to growth in retail savings accounts, despite a reduction in fixed-term deposit rates.
Metro said it is supporting customers' requests for repayment holidays, participating in the Coronavirus Business Interruption Loan Scheme and applying to participate in the Bounce Back Loan Scheme for small businesses.
"The impact of Covid-19 has been, and continues to be, rapidly evolving and difficult to predict with any certainty. An update on the impacts of the pandemic and its economic consequences will be provided at the first half results," the lender added.
Shares in Metro Bank were down 2.7% in London in mid-morning trade on Wednesday at 84.42 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Metro Bank (MTRO)