(Alliance News) - Metro Bank PLC on Wednesday said it widened its loss quarter-on-quarter with the lender adding it is mulling its future growth plans after experiencing a challenging first nine months in 2019.
In the quarter ended September 30, Metro Bank widened its third quarter pretax loss to GBP6.7 million, from a GBP900,000 loss in the second quarter.
On an underlying basis, before one-off costs, it swung to a third quarter pretax loss of GBP2.2 million from a GBP6.7 million profit in the second quarter. In the third quarter of 2018, it registered an underlying pretax profit of GBP15.1 million.
The challenger bank generated total underlying revenue of GBP99.4 million, 5.3% lower year-on-year from GBP105.0 million. Quarter-on-quarter, this represented a 9.0% retreat from GBP109.2 million.
The underlying revenue comprises of GBP76.6 million in net interest income, down 7.0% quarter-on-quarter from GBP82.4 million, and fee and other income, up 5.4% to GBP25.3 million from GBP24.0 million in the second quarter.
The bank did register a GBP2.5 million loss on the sale of assets during the quarter, slightly reducing its underlying revenue.
For the first nine months of 2019, total underlying revenue stands at GBP316.2 million, up 7.3% year-on-year from GBP294.8 million, though it has swung to a GBP3.3 million pretax loss from GBP34.4 million profit. Underlying pretax profit sunk 71% to GBP11.3 million from GBP39.2 million.
Chief Executive Craig Donaldson said: "This financial performance reflects a challenging nine months for the bank. Despite considerable headwinds, we have made strong progress in reducing costs, increasing fee income and further strengthening our capital and liquidity position whilst also retaining our top position for overall quality of service for personal current account holders."
During the quarter, Metro Bank had total deposits of GBP14.2 billion, up 3.9% quarter-on-quarter from GBP13.7 billion.
Looking ahead, the company said it is "further evaluating its future plans to balance growth, profitability and capital efficiency", adding that it will update on this when it publishes its full year results.
Metro Bank said: "In the intervening time the bank will optimise capital, continue to progress with its cost efficiency programme and target further income diversification."
The release of its third quarter numbers comes hours after the company announced its founder Vernon Hill has stepped down as chair with immediate effect. Hill will remain as a non-executive until the end of 2019.
Non-Executive Director Michael Snyder has been appointed interim chair while the lender seeks a permanent successor for Hill.
Shares in Metro Bank closed 0.3% higher at 193.60 pence each in London on Wednesday.
By Eric Cunha; ericcunha@alliancenews.com
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Metro Bank (MTRO)