British challenger bank Metro Bank posted its first set of results since a March share offering, reporting an £11.1 million ($15.9 million) loss.
The bank cited increasing revenues, deposits and assets as factors in its favour going forward despite the loss.
“I am particularly pleased with the momentum and quality of our lending; net lending increased by 125% per cent year on year to £4.1 billion driven by strong growth in both residential mortgages and commercial lending,” CEO Craig Donaldson said in a statement on Wednesday.
Revenue increased 11% quarter-on-quarter to £37.7 million and deposits increased 15% to £5.9 billion. While the bank is much smaller than its peers, it is better capitalised, citing a capital buffer of 25% of assets. Bigger banks generally have a capital ratio of about half that.
Metro Bank cut the size of its public offering of shares in February as turmoil gripped the market.
The bank raised £400 million in its March IPO, down from £500 million, cutting the price of its shares to £20 from £24. Metro Bank said the IPO cost £3.2 million in fees.
Here’s the share chart:
Metro Bank, set up in 2010 by American entrepreneur Vernon Hill, is yet to turn a profit. The lender made a post-tax loss of £10.1 million in the fourth quarter last year, slightly less than the £10.7 million loss in the previous quarter.