Metro Bank PLC (LON:MTRO) reported a 135% leap in third quarter underlying pre-tax profit, boosted by an increase in customer accounts and growth in residential mortgages and commercial lending.
The lender posted underlying profit before tax of £7.2mln in the three months ended 30 September, compared to £2mln in the previous quarter and £600,000 a year earlier.
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Metro, which began trading on the London Stock Exchange in March last year, also announced its chief financial officer Mike Brierley would retire next year. J Sainsbury plc (LON:SBRY) finance chief, David Arden, has been appointed to replace Brierley.
The so-called challenger bank said it was preparing a bid for the package set up by Royal Bank of Scotland Group PLC (LON:RBS) to help small and medium sized business.
The package includes £425mln of grants for challenger banks and other financial providers to support them lending to businesses. RBS set up the fund as an alternative to having to sell its Williams & Glyn branches under conditions of its state aid-conditions.
Metro’s chief executive Craig Donaldson said the bank was on track to meet its pledge to lend £1bn to businesses by the end of the year.
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The company has been expanding its network of branches, opening in Peterborough- its 50th branch. It plans to open another 17 by the end of next year.
During the third quarter, the group reached a record 79,000 increase in customer accounts to 1.12mln, up 33% on the previous year. Deposits increased 47% to £310.7bn.
“Metro Bank continues to win fans, attract deposits, lend to consumers and businesses, and generate profits that are re-invested for the benefit of our customers,” said chairman and founder Vernon Hill.
“We are the revolution in British banking, offering real choice to consumers and businesses.”
Shares fell 1.13% to 3,600p in morning trading.