COMMUNIQUÉ DE PRESSE

par Metro Bank Holdings PLC (isin : GB00BMX3W479)

Metro Bank Holdings PLC: Interim results for half year ended 30 June 2023

Metro Bank Holdings PLC (MTRO)
Metro Bank Holdings PLC: Interim results for half year ended 30 June 2023

01-Aug-2023 / 07:00 GMT/BST


Metro Bank Holdings PLC

Interim results

Trading update H1 2023

1 August 2023

 

Metro Bank Holdings PLC (LSE: MTRO LN)

Interim results for half year ended 30 June 2023

Highlights

  •  

Underlying profit before tax of £16.1 million (H2 2022: loss of £2.6 million) represents the third consecutive quarter of underlying profitability, reflecting improved operating margins driven by the actions taken as part of the turnaround plan to optimise the balance sheet and control cost inflation for sustainable profitability.

  •  

Statutory profit before tax of £15.4 million (H2 2022: loss of £10.5 million) reflects the significant reduction in exceptional items and has supported capital accretion in the half.

  •  

Total underlying revenue was up 21% YoY but remained flat HoH at £285.6 million (H2 2022: £285.9 million, H1 2022: £236.2 million) reflecting improved lending yields offset by increased cost of deposits and limited loan growth given capital availability.

  •  

Total underlying operating expenses reduced 3% both YoY and HoH to £258.2 million (H2 2022: £266.5 million, H1 2022: £266.3 million), driving positive jaws of 24% YoY and 3% HoH, despite persistent high inflation, as a result of the continued focus on cost discipline and the successful implementation of initiatives that enable the bank to scale appropriately.

  •  

The bank’s service-led core deposit franchise remains resilient to increased competition in the market and continues to attract new customers, opening 106,000 Personal Current Accounts and 23,000 Business Current Accounts in the half. The bank remained ranked first for customer service in Stores in the CMA survey.

  •  

Customer deposits reduced 3% HoH to £15.5 billion (31 December 2022: £16.0 billion) in line with prevailing market conditions, though the bank saw net deposit inflows in June, a trend that continued in July.

  •  

The bank’s MREL ratio was 18.1% as at 30 June 2023, up 40bps from 17.7% as at 31 December 2022 and up 70bps from 17.4% as at 1 January 2023, reflecting the disciplined origination strategy and statutory profit for the half.

Daniel Frumkin, Chief Executive Officer at Metro Bank, said:

“I am encouraged by the activity across the business. Our statutory profitability in H1, making this the third consecutive quarter of underlying profitability, demonstrates that our strategy is working. We continue to win new customers every day through our service-led franchise, at the same time as showing ongoing cost discipline and pursuing our targeted store expansion. Whilst we remain watchful of macro-economic headwinds, we have the expertise, capability and infrastructure in place to unlock our future growth potential.”

 

 

Key Financials

 

£ in millions

30 Jun

2023

31 Dec

2022

Change from

FY 2022

30 Jun

2022

Change from

H1 2022

 

 

 

 

 

 

Assets

£21,747

£22,119

(2%)

£22,566

(4%)

Loans

£12,572

£13,102

(4%)

£12,364

2%

Deposits

£15,529

£16,014

(3%)

£16,514

(6%)

Loan to deposit ratio

81%

82%

(1pp)

75%

6pps

 

 

 

 

 

 

CET1 capital ratio

10.4%

10.3%

10bps

10.6%

(20bps)

Total capital ratio (TCR)

13.2%

13.4%

(20bps)

13.8%

(60bps)

MREL ratio

18.1%

17.7%

40bps

18.3%

(20bps)

Liquidity coverage ratio

214%

213%

1pp

257%

(43pps)

 

 

£ in millions

H1

2023

H2

2022

Change from

H2 2022

H1

2022

Change from

H1 2022

 

 

 

 

 

 

Total underlying revenue1

£285.6

£285.9

-

£236.2

21%

Underlying profit/(loss) before tax2

£16.1

(£2.6)

n.m.

(£48.0)

n.m.

Statutory profit/(loss) before tax

£15.4

(£10.5)

n.m.

(£60.2)

n.m.

Net interest margin

2.14%

2.11%

3bps

1.73%

41bps

Lending yield

4.50%

3.93%

57bps

3.40%

110bps

Cost of deposits

0.66%

0.25%

41bps

0.14%

52bps

Cost of risk

0.18%

0.33%

(15bps)

0.29%

(11bps)

Coverage ratio

1.54%

1.41%

13bps

1.36%

18bps

Underlying EPS

7.8p

(2.0p)

n.m.

(28.5p)

n.m.

Tangible book value per share

£4.42

£4.29

3%

£4.30

3%

 

 

  1. Underlying revenue excludes grant income recognised relating to the Capability & Innovation fund.
  2. Underlying profit/(loss) before tax is an alternative performance measure and excludes impairment and write-off of property, plant & equipment (PPE) and intangible assets, transformation costs, remediation costs and costs incurred as part of the holding company insertion.

 

Investor presentation

A presentation for investors and analysts will be held at 9.30AM (UK time) on 1 August 2023. The presentation will be webcast on:

https://webcast.openbriefing.com/mb23h1/

For those wishing to dial-in:

From the UK:  0800 358 1035

From the US:  +1 855 979 6654

Access code: 332501

Other global dial-in numbers: https://www.netroadshow.com/events/global-numbers?confId=52736

 

Financial performance for the half year ended 30 June 2023

Deposits

£ in millions

30 Jun

2023

31 Dec

2022

Change from

FY 2022

30 Jun

2022

Change from

H1 2022

 

 

 

 

 

 

Demand: current accounts

£7,106

£7,888

(10%)

£7,770

(9%)

Demand: savings accounts

£7,218

£7,501

(4%)

£7,817

(8%)

Fixed term: savings accounts

£1,205

£625

93%

£927

30%

Deposits from customers

£15,529

£16,014

(3%)

£16,514

(6%)

 

 

 

 

 

 

Deposits from customers includes:

 

 

 

 

Retail customers (excluding retail partnerships)

£5,647

£5,797

Voir toutes les actualités de Metro Bank Holdings PLC