(Alliance News) - Metro Bank PLC on Wednesday said its loan book grew in the third quarter, driven by the UK-supported lending schemes rolled out amid the Covid-19 pandemic.
At September 30, the challenger bank's loan book stood at GBP15.09 billion, which is up 2% from GBP14.86 billion at June 30 and 1% higher from GBP14.89 billion at the same point the year before.
"In a challenging environment, Metro Bank has delivered a good performance with loan growth reflecting our support for government-backed lending schemes," Chief Executive Daniel Frumkin said.
Metro has extended more than GBP1.3 billion in government-backed business loans to over 33,000 customers, primarily through the Bounce Back Loan Scheme.
Metro noted its number of active payment deferrals reduced to less than 3.5% of its retail mortgage portfolio at the end of third quarter, down from 16% at the end of the first half.
The lender's loan-to-deposit ratio rose to 97% from 95% at June 30, with Metro ascribed to the "capital-efficient" lending schemes.
Metro's deposits were flat at the end of the quarter at GBP15.62 billion from GBP15.58 billion at June 30. But were up 10% on the year before.
The bank said it held a "continued focus" on managing down the cost of deposits in the third quarter through an "improved mix towards non-interest-bearing current accounts and a reduction in fixed term deposits".
Metro said its CET1 remains "materially in excess of regulatory minima". Its total capital plus MREL ratio of 20.2% at 30 September remains above the minimum MREL requirement, but Metro noted its below the firm's MREL requirements plus buffers, pending the outcome of the Bank of England MREL framework review.
Metro added its liquidity coverage ratio was again "strong", closing the quarter broadly in line with the ratio at June 30.
Frumkin added: "We have made further progress against the strategic priorities we set out at the beginning of 2020, completing the acquisition of RateSetter in the quarter and launching new initiatives which enable us to meet more customer needs. The continued dedication of our colleagues and their focus on excellent customer service underpins our position as the UK's best community bank."
Shares in Metro Bank were up 1.2% in London on Wednesday morning at 60.24 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Metro Bank (MTRO)