A new bank has reported an increase in total loans to £755 million, ahead of its plans to float in 2016.
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div>A new bank has reported an increase in total loans to £755 million, ahead of its plans to float in 2016.
Metro Bank has also claimed to have curbed losses and increased its total loans by 350 per cent, ahead of its plans for stock flotation in 2016.
The Bank, which was the first new bank to receive a licence in 100 years, reported losses of £10.8 million in the last quarter of 2013, which was down from £11.5 million in the three months preceding.
Chief Executive Craig Donaldson said last year the Bank’s losses had peaked and that the Bank should start to become profitable. The Bank has now announced the completion of a £387.5 million equity fundraising round, and said it is considering floating in London in 2016.
Metro Bank’s deposits increased to £1.3 billion, which grew by 128 per cent over the year. Its total loans increased to £755 million which was an increase of 348 per cent from the previous year.
The new bank has 25 stores throughout London and the South East and intends to open a further 12 this year.
Ultimately the lender wishes to open 200 stores in total throughout South East England. It also intends to add another 500 staff members to its 1,000 current employees.
Craig Donaldson said: “Our focus continues to be on offering customers a community bank that provides the very best in service and convenience.
“As our store network expands across London and the south east, we’re offering more and more people a real choice on the high street, and we’re looking forward to welcoming ever increasing numbers of customers in 2014.”
Regarding the fundraising, Vernon Hill, Metro Bank’s billionaire co-Founder and Chairman, said the company had originally been targeting £250 million but could have raised almost £500 million following interest from investors on both sides of the Atlantic.
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