Metro Bank says turnaround plan is working after cutting losses to £245m
Metro Bank has said its turnaround plan is working, despite losing £245.1m last year, after its revenues increased 17 per cent despite the economic impacts of Covid-19.
The London retail bank said its efforts to cut costs and win over customers had started to work, after it set out its turnaround plan, to rejuvenate its finances, in February 2020.
Metro Bank CEO Daniel Frumkin said: “Two years into the turnaround, our strategy is delivering meaningful results as we move towards profitability.”
The comments come after Metro Bank said it is underlying revenues increased 17 per cent, from £340.9m at the end of 2020 to £397.9m at the end of 2021.
The firm also cut its pre-tax losses by 21 per cent, from £311.4m at the end of 2020 to £245.1m last year, after cutting its central London office space following its switch to a hybrid working model.
Founded by American businessman Vernon Hill and British businessman Anthony Thomson, Metrobank became the UK’s first new high street bank in more than a century after being launched in 2010.
Following a period of fast-paced growth, the bank hit financial troubles in 2019, after announcing it did not have sufficient capital to meet regulatory requirements.
The announcement saw shares in the bank plummet to depths from which they have never subsequently recovered.
The Holborn headquartered bank said it now has 2.5m customers, after it won over another 300,000 customers last year.