Shares in Metro Bank, the UK challenger bank, fell in early trade on Wednesday after rapid growth in loans last year ate into its capital ratio, raising concerns of a cash call on shareholders.
Metro, the UK's first high street banking launch in 150 years, reported an annual profit in 2017 totalling £10.8m following a loss of £16.8m in 2016. This was its first full-year profit since the company was established in 2010.
Other 2017 financial highlights
- Record deposit growth of £3.7bn up 47% to £11.7bn
- Record lending growth of £3.8bn, up 64% to £9.6bn
- Record underlying profit before tax of £20.8m after loss of £11.7m in 2016
- Total revenue £293.8m up from £195.1m in 2016
- Record 302,000 increase in customer accounts to 1.217m
The company, which currently has 55 branches, said it planned a further 18 openings in 2018 and extended its guidance out to 2023, expecting to operate around 100 stores in 2020 and between 140-160 by 2023.
Vernon Hill, founder and chairman (left), said: "At Metro Bank we are the fusion of digital and physical, combining face-to-face relationship banking with best in class technology creating record brand recognition of 89% in London.
"Our record lending, deposit and customer account growth proves that the Metro Bank model is the future of banking."
Chief executive Craig Donaldson added: "For SMEs (small and medium-sized enterprises), the backbone of the British economy, Metro Bank is the real competition to the big incumbents.
"As we enter new markets across the country, we will continue to create more jobs and bring real competition and choice for personal and business banking customers."
Shares in Metro Bank were down 5.21% to £34.22 after an hour of trade on the London Stock Exchange.