Business
Metro Bank PLC H1 2019 Results
Metro Bank PLC H1 2019 Results.
About this update from Metro Bank Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 6283G Metro Bank PLC 24 July 2019 \n\n \n \nMetro Bank PLC\nH1 Trading Update 2019\n July 24, 2019\n \n \nCHALLENGING H1 WITH PROGRESS ON STRATEGIC INITIATIVES \nMetro Bank PLC (LSE: MTRO LN)\n \n\n\n\n\nH1 Summary\n\n\n\n\n· \n\n\nTotal deposits of £13.7 billion, in line with H1 2018, following net outflows of £2.0 billion in H1 2019. Deposit performance in the second quarter impacted by intense speculation at the time of the capital raise, primarily driven by a limited number of commercial customers withdrawing deposits.\n\n\n\n\n· \n\n\nTotal deposits have returned to net growth. In the last eight weeks, including July month to date, we have had net deposit inflows of over £700 million.\n\n\n\n\n· \n\n\nGrowth in retail deposits during H1 2019, with stable performance of the SME deposit base. \n\n\n\n\n· \n\n\nYear-on-year loan growth of £3.0 billion, up 25% to £15.0 billion. Loan growth was reduced by the planned disposal of a £521 million loan portfolio previously acquired in 2017, which is classified as held for sale as at 30 June 2019 and executed 24 July 2019.\n\n\n\n\n· \n\n\nStrong asset quality reflected in low cost of risk of 6bps (H1 2018: 8bps).\n\n\n\n\n· \n\n\nUnderlying profit before tax1 of £13.6 million in H1 2019 (H1 2018: £24.1 million). The year-on-year reduction includes the impact of adopting IFRS 16 from 1 January 2019 and interest expense on the Tier 2 debt issued end June 2018, as well as market compression in mortgage rates and the sale of treasury assets during the period.\n\n\n\n\n· \n\n\nStatutory profit before tax of £3.4 million in H1 2019 (H1 2018: £20.8 million) also reflects investment in the bank's transformation programme and remediation costs as we continue to progress remediation work following the risk-weighted asset (\"RWA\") adjustment in January 2019.\n\n\n\n\n· \n\n\nSuccessful completion of upsized £375 million equity capital raise to support growth resulting in CET1 ratio of 15.8%, 16.1% pro-forma for the loan portfolio sale.\n\n\n\n\n· \n\n\nUpgraded cost saving guidance as transformation programme progressed. Exit run-rate cost savings in 2019 expected to be at the top end of the previously indicated £15 million to £19 million range. \n\n\n\n\n· \n\n\nFee and other income increased 61% to £46.4 million in H1 2019 (H1 2018: £28....