Metro Bank Holdings Plc · LSE:MTRO
Metro Bank — Q2 2016 Earnings Presentation
13 slides from Metro Bank's earnings presentation, Jul 27, 2016
Slide 1: Q2 2016 Results
Q2 2016 Results Long Live the Revolution 27th July 2016 1
Slide 2: our disruptive model goes from strength to strength
our disruptive model goes from strength to strength Q2 2016 Q1 2016 QoQ% YoY% On Our culture and model Increase Increase Target continue to differentiate us Customer deposits £6.6B £5.9B +12% +74% • 80% brand recognition* Net average deposits • Awarded Most Trusted £5.7M £6.6M -13% +44% Finan
Slide 3: we continue to grow with low cost, sticky deposits
we continue to grow with low cost, sticky deposits Customer deposits (m) H1 Cost of deposits £6,599 • Annual deposit growth of 74% • Retail 82% growth £3,791 74% • Commercial 68% growth £1,956 94% • Deposit mix: commercial 52% £870 125% and retail 48% 1.36% 0.96% 0.82% 0.87% Jun 2013 Jun 2014 Jun 20
Slide 4: 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% • Non-performing loans (90 days+ in Net customer loans (m) arrears) 0.12% of loan balances at end £4,629 Loan to deposit ratio H1; an improvement from H2 2015 due to lower commercial arrears £2,206 110% 70%
Slide 5: delivering a strong and simple highly liquid deposit funded balance sheet
delivering a strong and simple highly liquid deposit funded balance sheet £’m Q2 2016 Q1 2016 Quarter • With a 70% loan to deposit ratio, Growth the balance sheet is intrinsically Cash and equivalents 498 489 +2% liquid Investments 2,853 2,417 +18% • 86% of the liquidity and investment Customer lend
Slide 6: with income growth continuing to outpace cost growth
with income growth continuing to outpace cost growth Quarter Annual £’m Q2 2016 Q1 2016 Growth Growth • 48% reduction in quarterly Net interest income 36.2 30.5 +19% +82% losses (Q1 £7.9M, Q2 £4.1M) Fees and other income 8.6 7.2 +19% +37% • Positive income (+63%) and Net gains on sale of securities
Slide 7: as store contribution and performance increases
as store contribution and performance increases Store contribution increases for new and existing stores Positive contribution £29.2M • All stores open 18 months or 41 Stores Negative contribution £21.2M more in positive contribution 40 Stores £30.1M £13.0M 33 stores 36 Stores £22.5M • Stores open w
Slide 8: and we continue to expand our store network
and we continue to expand our store network 42 stores open 8 stores opening in 2016 Chelsea April Bexleyheath July Wimbledon In construction Clapham In construction Chelmsford In construction Eastbourne In construction Colchester In construction Basingstoke In construction with a strong pipeline Bat
Slide 9: and invest in & accelerate our digital offerings
and invest in & accelerate our digital offerings • New online Commercial Live banking platform • New public website with Q3 2016 new geo user interface • New mobile app for Personal Q4 2016 and Small Business Customers • Online application suite build H1 2017 out – including new to franchise current
Slide 10: whilst still delivering a continued reduction in quarterly losses
whilst still delivering a continued reduction in quarterly losses Underlying loss after tax Q3 2015 Q4 2015 Q1 2016 Q2 2016 £4.1M (48)% £7.9M (22)% (5)% £10.2M £10.7M 10
Slide 11: so we reiterate our current and 2020 guidance
so we reiterate our current and 2020 guidance UK Deposit Market in 2020: c.£2.3trn(1) Metro Bank Deposits: c.£27.5B, c.1.2%(2) 2020 Targets: Month-on-month profitability by the end of 2016 c.110 stores, c.£5.25M deposits per month Loan to Deposit: c.80% Full year profitability for 2017 NIM + Fees: c
Slide 12: questions?
12 questions? ETRO BANK
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