Metro Bank profits jump 197% as it adds 100,000 new customers

Lender said business and commercial accounts make up the bulk of deposits, which hit £14.8bn in the third quarter

The bank is investing in its mobile offering and other technology (REUTERS)

Metro Bank almost tripled profits in the third quarter of 2018, as the number of customer accounts surpassed 1.5 million and lending hit a record of £13.1bn.

The bank reported a 197 per cent increase in profits, which rose to £39.2m from £13.2m in the same period last year.

Total deposits went up to £14.8bn from £10.8bn compared with the third quarter of 2017, with deposits from business and commercial customers showing the fastest growth and representing 54 per cent of total deposits.

Metro Bank added 102,000 new customers in the third quarter, bringing the total added so far this year to more than 300,000.

However, shares in the bank dropped more than 11 per cent in early trading.

The lender warned that “recent competitive trends” in the mortgage market had continued, in spite of the Bank of England’s decision to hike interest rates in August.

Craig Donaldson, Metro Bank’s chief executive, said: “The first nine months of 2018 show another strong performance from Metro Bank. Our integrated, frictionless model - stores, online, mobile and phone - combined with superior service is a winning formula for our customers.”

Mr Donaldson said the bank was continuing to invest in mobile services and artificial intelligence.