Metro Bank saw strong growth in consumer lending supported by the integration of RateSetter in the first quarter, after the third nation-wide lockdown brought a sluggish start to the year.
The challenger bank, which acquired the former peer-to-peer lender last year and is targeting £2bn in consumer lending with the RateSetter brand, said that customer activity dipped in January following the introduction of the third lockdown in late December and recovered as the quarter progressed, helped by the gradual easing of restrictions in April.
Metro Bank revealed its first quarter net loans were broadly flat at £12.05bn with strong growth in consumer lending supported by the integration of the RateSetter platform and continued growth in capital-efficient government-supported business lending.
The bank said that it successfully delivered the completion of the £337m RateSetter back book acquisition on 2 April and roll out of unsecured personal lending through the platform across all channels, including stores on 12 April.
Metro Bank said in its full-year results in February that more than £120m of personal loans had already been written via digital channels including the Metro Bank app and website and the RateSetter website.
“Metro Bank has delivered a solid first quarter, with continued improvement in deposit mix,” said Daniel Frumkin, chief executive at Metro Bank.
“We are also beginning to see progress across our loanbook, with strong growth in consumer lending and specialist mortgages as we focus on assets delivering higher risk-adjusted returns.
“Our turnaround strategy is ongoing and I remain incredibly grateful for how colleagues have continued to step-up to deliver for our customers and communities during these challenging times.”