Metro Bank PLC on Wednesday reported a ‘solid’ first quarter, with lending and deposits broadly flat, and said it feels confident of a return to profit.

Shares in the London-based challenger bank were up 4.8% in London on Wednesday at 90.12 pence each.

Its loan book ended the first quarter at £12.34 billion, up from £12.05 billion at the same point last year and from £12.29 billion at the end of 2021.

Metro said it saw continued strong growth in consumer lending and specialist mortgages, and noted its credit impairments remain ‘benign’.

Customer deposits increased slightly to £16.50 billion from £16.41 billion year-on-year, and inched higher from £16.45 billion over the past three months.

Chief Executive Daniel Frumkin said: ‘Metro Bank has delivered a solid quarter, as we continue to accelerate the shift of our balance sheet, with improved yields achieved from specialist mortgages and unsecured lending, alongside lower cost of deposits and tight cost control.

‘We remain focused on executing our plans and returning the bank to profitable growth whilst supporting our customers, communities and colleagues in what continues to be a changing macro-economic environment.’

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