Metro Bank Holdings Plc · LSE:MTRO
Metro Bank — FY2017 Earnings Presentation
16 slides from Metro Bank's earnings presentation, Feb 21, 2018
Slide 1: Join the revolution
JOIN THE REVOLUTION 21 February 2018
Slide 2: The revolution goes from strength to strength
the revolution goes from strength to strength QoQ% YoY% On FY 2017 FY 2016 Change Increase Target • Awarded Moneywise Most Trusted Financial Provider for the second consecutive year and Best Mobile Customer deposits £11.7b £8.0b +8% +47% Banking App 2017 • Fulfilled our commitment of over £1bn Ne
Slide 3: Delivering our sixth consecutive quarter of rising profitability
delivering our sixth consecutive quarter of rising profitability through our award winning model and culture Underlying (loss)/ profit before tax(1) £20.8m Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 £8.3m £7.2m £4.0m £1.5m £2.0m £0.6m £(3.4m) £(9.6m) £(11.7m) (1) Quarterly under
Slide 4: Increasing Net Promoter Score, brand recognition and customer accounts
leading to increasing Net Promoter Score, brand recognition and customer accounts as we create FANS 1,217k 1,045k 915k 780k 89% 655k 500k 82% 447k 84% 82% 359k 80% 275k 77% 67% 70% 70% 66% 66% Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 (1) Brand recognition Customer accoun
Slide 5: More and more FANS trust us with low cost, sticky deposits
more and more FANS trust us with their low cost, sticky deposits Customer deposits (£’b) FY Cost of deposits £11.7 • Record £6.3m deposit growth per store per 47% month in FY 2017 (2016: £5.7m) £8.0 56% • Annual deposit growth per store increased to 78% £5.1 £76m ($103m(1)) from £68m ($92m(1)) in 20
Slide 6: Enabling us to grow our lending at low risk
enabling us to grow our lending at low risk High growth, low risk lending increasing our LTD ratio Net customer loans (£’b) Loan to deposit ratio 64% £9.6 • Strong momentum in lending across all asset classes • Loan to deposit ratio of 82% in 4Q17 66% £5.9 • Annual loan growth of 64% 123% £3.5 • Ret
Slide 7: Delivering a highly liquid, deposit funded balance sheet
delivering a highly liquid, deposit funded balance sheet £’m FY 2017 FY 2016 Annual • With a 82% loan to deposit ratio, the balance sheet Growth is intrinsically liquid Loans and advances to customers 9,620 5,865 64% • 91% of the liquidity and investment portfolio is cash, Treasury assets(1) 6,127 3
Slide 8: And achieving our first full year of profitability
and achieving our first full year of profitability £’m FY 2017 FY 2016 Annual Growth • £20.8m profit in 2017 compared to a £11.7m loss in 2016; a £32.5m positive Net interest income 241.0 154.2 56% move Fees and other income 49.1 35.5 38% Net gains on sale of securities 3.7 5.4 (31%) • Annual operat
Slide 9: Store contribution and performance continuing to increase
with store contribution and performance continuing to increase Store contribution increases for new and existing stores (quarterly) • All stores open 18 months or more make a Positive contribution Negative contribution £62.0m £56.7m positive contribution £47.5m £40.0m • New stores open with more dep
Slide 10: Ealing as an example of how store contribution grows
with Ealing an example of how store contribution grows £’000 Y1 Y2 Y3 Y4 • Grand opening in June 2013 Number of customer accounts 10,399 17,603 24,949 31,870 • Positive contribution within 14 months Deposits 44,581 153,232 226,255 290,347 • Contribution to profit increasing year- on-year, with costs
Slide 11: Continuing investment in our multi-channel experience
and continuing investment in our multi-channel experience, the future of high growth retail Legacy-free IT and state-of-the art stores offer best-in-class service however, wherever and whenever the customer chooses. ONLINE ON THE APP Simple and secure Customer-led digital journey • State of the art
Slide 12: More stores opening in new and existing markets
with more stores opening in new and existing markets 55 stores open, 12 opening in 2018 and 200 to 250 for national coverage 12
Slide 13: As we refine and grow into our 2020 targets
as we refine and grow into our 2020 targets UK Deposit Market in 2020: c.£2.4trn(1) • Following sustained outperformance, we Metro Bank Deposits: increase deposits per store per month c.£27.5b, c.1.2%(2) from c.£5.25m to £5.5-6.5m. We adjust the store outlook from c.110 to c.100 2020 Targets: • To r
Slide 14: With the best yet to come: 2023 targets
and introduce 2023 targets as the revolution continues to grow, with the best yet to come… Stores Deposit growth per store per 2023 Targets: Metro Bank Deposits: £50-55b 140-160 month (£'m) £5.5-6.5m 6.5 150 140-160 stores £5.5-6.5m deposits per month c.100 6.0 Loan to Deposit: 85-90% 100 Customer N
Slide 15: Because it's all about creating FANS
because its all about creating FANS 15
Slide 16: Disclaimer
Disclaimer IMPORTANT: YOU MUST READ THE FOLLOWING. The following applies to this document (the “Information”). To the extent available, the industry, market and competitive position data contained in this presentation come from official or third party sources. Third party industry publications, stud