Home Finance Metro Bank turnaround sees it win back savings customers after funding crisis

Metro Bank turnaround sees it win back savings customers after funding crisis

Metro Bank has revealed first-quarter lending slumping by nearly 10 percent but notched up a hike in savings thanks to turnaround efforts launched in the wake of last year’s funding crisis.

The troubled high street lender reported total lending of £11.8billion in the three months to March 31, down nine percent from £12.9billion a year ago as it switched focus to more profitable specialist mortgages and commercial loans.

Total deposits rose four percent year-on-year to £16.2billion after a campaign to win back savers with attractive interest rates following outflows of cash amid fears over its future last October.

The group secured a £925million rescue funding deal with shareholders last autumn and has since launched a cost-cutting plan that will end its seven-day-a-week trading and see jobs axed.

It announced in March that it was cutting around 1,000 roles, with more job losses possible, as it looks to trim annual costs by £50million, with another £30million due to be made in savings by the end of 2024.

The bank added that from March 29 all of its 76 stores will no longer open on Sundays or bank holidays and opening hours will be cut.

Reporting first-quarter figures on Tuesday, chief executive Daniel Frumkin said he was “confident that financial results will continue to improve”.

Metro Bank has scaled back on deposit-grabbing efforts and is now focusing more on less costly savings rates, leading to a £200 million drop in deposits in March, according to Chief Executive Officer (CEO) Daniel Frumkin.

He said: “Following the successful deposit campaign launched in the fourth quarter, we have implemented our plans to reduce cost of deposits… this led to a modest reduction of higher-cost deposits in March.”

Mr Frumkin added: “Based on performance in the first quarter we remain confident that financial results will continue to improve throughout 2024.”

In a branch opening hour overhaul last month, the group stated that the majority of its branches’ 44 sites would only be open for five days a week, from Monday to Friday, from 9.30am to 5pm.

The remaining 32 branches will open six days a week, from 9.30am to 5pm from Monday to Friday, and from 11am to 4pm on Saturdays.

Notably, Metro Bank branches were previously open from 8.30am to 6pm from Monday to Saturday, and from 11am to 5pm on Sundays.

The bank has reassured customers that it has no plans to shut any of its existing branches and aims to open at least 11 more locations, primarily across the North of England.


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