Metro Bank still in the red despite customer growth

The first new bank to open on Britain’s high streets in more than a century increased its number of account holders by 54% during the first half of the year but still remained loss making.

Known for its dog-friendly branches and coin-counting machines, Metro Bank said it had now opened more than 200,000 accounts.

Ahead of the bank reporting season, the company said its deposits stood at £870 million on June 30 while its lending has risen to £366 million since it opened its first branch in Holborn three years ago.

Boss Craig Donaldson said: “The British people have demanded a revolution in banking, including a focus on service, the end of stupid bank rules and ultimate convenience. Metro Bank is here to provide this choice. Given the strong start we’ve had in 2013, we’re on track to have a record-breaking second half of the year and look forward to bringing the best in customer service to thousands more people and businesses.”

Despite the growth in customer numbers, the bank said it had a £19.5 million operating loss in the period because of its growth plans.

Metro Bank now has 19 branches in and around London and expects to open at least five more this year. It has so far created 850 London jobs — a figure it expects to have risen to more than 1,000 by the end of 2013.

Founder Vernon Hill added: “With more than 200,000 customer accounts, including 15,000 businesses, over our 19 stores, we’re delighted to be creating Metro Bank fans.”