Metro Bank Holdings Plc · LSE:MTRO
Metro Bank — FY2016 Earnings Presentation
13 slides from Metro Bank's earnings presentation, Feb 22, 2017
Slide 1: FY 2016 Results
FY 2016 Results Join the Revolution 22nd February 2017
Slide 2: we delivered profitability in H2 2016
we delivered profitability in H2 2016 Underlying (loss)/profit before tax Q1 2016 Q2 2016 Q3 2016 Q4 2016 £1.5M £0.6M -£3.4M -£9.6M Quarterly underlying (loss)/profit before tax excludes FSCS Levy of £0.7M, which is included in the full year underlying loss before tax 2
Slide 3: as our disruptive model goes from strength to strength
as our disruptive model goes from strength to strength FY 2016 FY 2015 YoY% On Our culture and model Increase Target continue to differentiate us Customer deposits £8.0B £5.1B +56% • 84% brand recognition across London* Net average deposits per store month £5.7M £5.3M +8% • 78% Net Promoter S
Slide 4: and we continue to grow with low cost, sticky deposits
and we continue to grow with low cost, sticky deposits Customer deposits (£’m) FY Cost of deposits £7,951 • Record £5.7M FY 2016 average £5,108 deposit growth per store per month 56% (2015: £5.3M) is c.£68M per year £2,867 • Cost of deposits down to 0.66% in 78% £1,315 118% Q4 2016 1.18% 0.90% 0.82%
Slide 5: enabling us to grow our lending at low risk
enabling us to grow our lending at low risk High growth, low risk driving our LTD towards 80% • Annual loan growth of 66% Net customer loans (m) £5,865 • Retail 66% growth Loan to deposit ratio 66% • Commercial 64% growth £3,543 123% 74% • Loan mix: commercial 36% and retail £1,590 64% 112% 69% £751
Slide 6: delivering a strong and simple highly liquid deposit funded balance sheet
delivering a strong and simple highly liquid deposit funded balance sheet £’m FY 2016 FY 2015 Annual Growth • With a 74% loan to deposit ratio, the Cash and equivalents 500 282 +77% balance sheet is intrinsically liquid Investments 3,227 2,000 +61% • 84% of the liquidity and investment Customer lend
Slide 7: with income growth continuing to outpace cost growth
with income growth continuing to outpace cost growth Annual £’m FY 2016 FY 2015 Growth • Positive income (+62%) and Net interest income 154.2 88.9 +74% operating costs (+26%) jaws – FY 2015 to FY 2016 Fees and other income 35.5 24.9 +42% Net gains on sale of securities 5.4 6.4 -15% • Annual operatin
Slide 8: as store contribution and performance increases
as store contribution and performance increases Store contribution increases for new and existing stores Positive contribution £36.9M • All stores open 18 months or £35.4M 48 Stores Negative contribution 42 Stores £29.2M more in positive contribution 41 Stores £38.5M £21.2M 40 stores £16.2M 40 Store
Slide 9: and we continue to expand our store network
and we continue to expand our store network 48 stores open 2016: 8 stores opened 2017: 10-12 stores opening Pipeline Peterborough Merry Hill Luton Watford Ilford Birmingham Canterbury Strand Clapham High St. Leicester Oxford Enfield Swindon Bristol Colliers Wood Solihull Liverpool St. Wolverhampton
Slide 10: and invest in an integrated service proposition
and invest in an integrated service proposition • LIVE! Best-in-class Commercial • 2017: State-of-the-art online banking platform launched account applications, including “selfie” IDV • LIVE! Apple Pay® and Android • 2017: Personalised mobile alerts Pay™ mobile wallet payments with appropriate promp
Slide 11: whilst still delivering incremental profitability
whilst still delivering incremental profitability Underlying (loss)/profit before tax Q1 2016 Q2 2016 Q3 2016 Q4 2016 £1.5M £0.6M -£3.4M -£9.6M Quarterly underlying (loss)/profit before tax excludes FSCS Levy of £0.7M, which is included in the full year underlying loss before tax 11
Slide 12: and progressing towards our 2020 guidance
and progressing towards our 2020 guidance UK Deposit Market in 2020: c.£2.3trn(1) Metro Bank Deposits: c.£27.5B, c.1.2%(2) 2020 Targets: c.110 stores, Full year profitability for 2017 c.£5.25M deposits per month Loan to Deposit: c.80% NIM + Fees: c.3% Cost : Income: c.60% Cost of Risk(3): c.0.20% Le
Slide 13: disclaimer
disclaimer This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, an offer or invitation to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of Metro Bank PLC (the “Company”), nor shall it or