Metro Bank Holdings Plc · LSE:MTRO
Metro Bank — H1 2017 Earnings Presentation
13 slides from Metro Bank's earnings presentation, Jul 26, 2017
Slide 1: Join the Revolution
Join the Revolution 1H17 results, 26 July 2017
Slide 2: The revolution goes from strength to strength
the revolution goes from strength to strength QoQ% YoY% On 2Q17 2Q16 Increase Increase Target • One million FANS and rising • Awarded Moneywise Most Trusted Financial Customer deposits £9.8B £6.6B +9% +49% Provider for the second consecutive year and Best Mobile Banking App 2017 Net average depos
Slide 3: Delivering our fourth consecutive quarter of rising profitability
delivering our fourth consecutive quarter of rising profitability Underlying (loss)/profit before tax Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 £4.0M £2.0M £1.5M £0.6M -£3.4M -£9.6M 3
Slide 4: With an integrated service proposition offering the best of every channel
with an integrated service proposition offering the best of every channel Outstanding customer focussed retailers like Apple, Amazon/Wholefoods and Metro Bank understand that the future of retail is the combination of the best in store, online and mobile, and all invest in integrating the customer e
Slide 5: Which continues to bring low cost, sticky deposits
which continues to bring low cost, sticky deposits Customer deposits (£’m) FY Cost of deposits £9,805 £7,951 • £6.4M deposit growth per store per month in 23% 1H17 (1Q17:£7.3M, 2Q17: £5.5M) £5,108 56% • Cost of deposits continued the downward £2,867 78% trend to 0.53% in 2Q17 £1,315 118% 1.18% 0.90%
Slide 6: 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% • Strong momentum in lending across all asset classes Net customer loans (m) £7,750 • New volume loan to deposit ratio of 85% in 2Q17 excluding portfolio acquisition 32% • Annual loan growth of 67% Loan to
Slide 7: Delivering a strong and simple highly liquid deposit funded balance sheet
delivering a strong and simple highly liquid deposit funded balance sheet QoQ Annual £’m 2Q17 1Q17 Growth Growth • With a 79% loan to deposit ratio, the Loans and advances to 7,750 6,482 +20% +67% balance sheet is intrinsically liquid customers Treasury assets1 4,827 4,637 +4% +44% • 80% of the liqu
Slide 8: With a simple capital stack which will evolve as Metro Bank grows
with a simple capital stack which will evolve as Metro Bank grows • We continue to experience strong and accelerating organic lending growth supplemented by c.£600m portfolio acquisition in 2Q17 • To support this momentum and future growth ambitions, we brought forward our plans to raise equity • As
Slide 9: Enabling income growth to continue to outpace cost growth
enabling income growth to continue to outpace cost growth £’m 2Q17 1Q17 FY 2016 QoQ Growth Q2 to Q2 Growth • Doubled pre tax profit to £4.0m in Q2 from £2.0m in Q1 Net interest income 57.0 50.4 154.2 +13% +58% Fees and other income 11.5 10.9 35.5 +5% +33% • Positive income (+56%) and operating costs
Slide 10: As store contribution and performance increases
as store contribution and performance increases Store contribution increases for new and existing stores Positive contribution £47.5M Negative contribution £40.0M • All stores open 18 months or more £36.9M in positive contribution £35.4M £29.2M £48.7M 42 stores • New stores open with more deposits £
Slide 11: And we continue to expand our store network
and we continue to expand our store network 48 Stores open, a further 8-10 opening this year, and a strong pipeline for 2018 11
Slide 12: And refine our 2020 targets
and refine our 2020 targets • Increase our 2020 loan to deposit target UK Deposit Market to c.85% from c.80% in 2020: c.£2.3trn(1) Metro Bank Deposits: c.£27.5B, c.1.2%(2) • Move our 2020 ROE target of c.18% to 2022 with an interim 2020 target of 2020 Targets: c.14% c.110 stores, Full year profitabi
Slide 13: Disclaimer
disclaimer IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING. 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