our AMAZEING growth
STRATEGICCompletion of a £400 million capital raise Listing on the Main Market of the London Stock Exchange Record increase in customer accounts from 655,000 to 915,000 year-on-year Brand recognition of 84%1 across the London market and Net Promoter Score of 78%
OperationalExpanded our network to 48 stores, with 8 opening in 2016 Nearly 2,500 colleagues now work for Metro Bank, an increase of almost 500 in 2016 Launch of a game-changing commercial banking platform in November 2016 First UK retail bank to join the Faster Payments scheme since the service was launched in 2008
FinancialUnderlying2 profit before tax in Q3 and Q4 2016 (£0.6 million and £1.5 million) Positive income (+62%) and operating expense (+26%) jaws from 2015 to 2016 Decrease in underlying3 loss before tax for the year from £46.6 million in 2015 to £11.7 million in 2016 Decrease in statutory loss before tax for the year from £56.8 million in 2015 to £17.2 million in 2016 LTD ratio increased to 73.8% from 69.4% Improved CET1 ratio to 18.1% from 13.1%
2 Underlying loss before tax for the quarter excludes Listing and related costs, the FSCS levy and impairment of plant and equipment and intangible assets
3 Underlying loss before tax for the year excludes Listing and related costs and impairment of plant and equipment and intangible assets.
|Net average deposit per store per month||£5.7bn||+8%||£5.3bn||£4.9bn||£3.4bn||£3.1bn|
|Net customer loans||£5.9bn||+66%||£3.5bn||£1.6bn||£0.8bn||£0.2bn|
|Underlying loss before tax||£(11.7m)||improved 75%||£(46.6m)||£(48.9m)||£(55.4m)||£(45.7m)|
OUR DISRUPTIVE MODEL
creating FANS generates long-term value for everyone
FANATICAL PHYSICAL EXECUTION
revolutionising british banking
In August 2010, the revolution in British banking began with the opening of Metro Bank as the first new British high street retail bank in 100+ years.
We want to thank both the business community and consumers for their tremendous support.
Dear shareholders, customers and friends – our FANS.
Metro Bank is a Power Retailer created to redefine Retail and Business banking in Britain by delivering a unique, AMAZEING experience with unmatched service and convenience.
Our goal is to create a legendary global emotional brand by creating FANS who join our brand, remain loyal and bring their friends…
…Our future is limited only by our success in AMAZEING our FANS.
My thanks to our customers, FANS, colleagues, leaders and Directors. The best is yet to come.
Vernon W. Hill, II - Founder and Chairman 2 March 2017
CHIEF EXECUTIVE OFFICER’S STATEMENT
growing the revolution
2016 has been a fantastic year. From Listing on the London Stock Exchange, to growing our customer account base to over 900,000 FANS; to creating another 500 jobs and going into profitability. Metro Bank continues to go from strength to strength.
Our model is about creating FANS. We focus on creating FANS, and those FANS are telling their friends, families and colleagues that they should bank with us. And I’m very, very proud of that.
We are delighted to present our first Annual Report as a listed company.
This has been another great year for Metro Bank. We have expanded our network to 48 stores and created 500 jobs serving 915,000 customer accounts, with substantial growth across lending, deposits and customer accounts, as well as delivering two quarters of underlying profit and our first quarterly statutory profit.
We continue to show strong deposit growth even as the cost of our deposits falls. This demonstrates that our offering of relevant, convenient high impact stores, UK-based contact centres and easy-to-use online and mobile services is persuasive for retail, business and private customers…
Craig Donaldson - Chief Executive Officer 2 March 2017
delivering our vision
We create fans by “surprising and delighting” customers across every channel through integrated technology and AMAZEING colleagues.
We recruit, train and lead our team to deliver our unique value-added model and create FANS.
DIVERSIFIED, STICKY, LOW-COST DEPOSITS
DIVERSIFIED, STICKY, LOW-COST DEPOSITS
We attract deposits through our integrated model and unique culture which creates FANS.
LOW-RISK, DIVERSIFIED LENDING
We offer simple lending products to customers to meet personal and business needs. Our customer-centric underwriting process aims to ensure a low-risk loan book, which is the foundation of long-term growth.