Metro Bank (LON:MTRO), the first new high street lender for 100 years, has reported a 33 per cent increase in profit over the past quarter.
The “challenger bank” has won over clients with their seven day week and lengthy opening times, as well as free dog biscuits and coin counting machines for children at every branch.
The high street lender is also known for its more quirky traditions. It calls clients ‘fans’, and new employees reportedly join a conga line around the bank’s head office as a welcome ritual.
“We continue to grow the business, and remain on track to open a further ten stores before the year end,” said Craig Donaldson, the bank’s chief executive.
Lending increased by 11 percent to £6.5 billion, which helped underlying profits before tax reach £2 million. A record breaking 72,000 accounts were opened in this period, taking the bank’s total to 987,000.
Metro Bank made a pre-tax profit of £2 million in the three months to the end of March and reversing a £9.6 million loss in the first quarter of 2016.
With a heavy focus on customer service, the bank plans to open 10 new stores this year, despite the cost of running the branches, which are increasing at an annual growth rate of 26 percent.
Founder and chairman Vernon Hill said the bank “remains a revolution in British banking, championing the right of every customer to receive service and convenience tailored to their needs”.
In contrast to the Metro Bank’s success, Santander (LON:BNC) has seen UK profits fall 8 percent to £354.5 million. The group’s chief executive, Nathan Bostock said: “Looking ahead, we anticipate a changeable and potentially more challenging macro environment.”
The bank also lost customers after dropping the rate of its popular 123 current accounts and upping its monthly fee to five pounds.
Nathan Bostock said: “Looking ahead, we anticipate a changeable and potentially more challenging macro environment.”