Metro Bank Holdings PLC Announces Profitable 2023 Fiscal Year Results

Metro Bank Holdings PLC reported a statutory profit before tax of £30.5 million for the year ending 31 December 2023, marking its first profit since 2018. This follows a significant 67% year-on-year decrease in underlying losses, down to £16.9 million. The bank has highlighted its strengthened liquidity position, with deposits reaching £15,623 million by the end of 2023, leading to an elevated liquidity coverage ratio of 332%.

A 5% growth in underlying revenue was noted for the year, reflecting a strategic shift towards asset rotation and higher yields, coupled with a 12% increase in capital-efficient fee income. Metro Bank achieved a marginal reduction in its operating costs, aligning with the positive financial performance termed as creating positive operating jaws.

Throughout 2023, Metro Bank also focused on expanding its customer base, opening 246,000 new personal and business current accounts. This development effort is part of the bank's broader strategy to realize £50 million in annualized cost savings in Q1 2024, which includes reducing its workforce by approximately 1,000 colleagues. An additional £30 million in savings is anticipated by the end of 2024.

Daniel Frumkin, CEO, expressed confidence in the bank's positioning for growth, highlighting a significant focus on serving the SME, commercial, and specialist mortgage sectors. This strategic direction, along with the bank's commitment to physical stores and digital customer services, underpins its ambition to become a leading community bank.