Metro Bank (MTRO) has become the second high street lender in 24 hours to report that the UK’s decision to leave the European Union has failed to dent consumer confidence.
There were concerns that customers would delay buying houses or applying for loans on fears of falling house prices and lower economic growth post-Brexit.
But Metro Bank mirrored Tuesday’s half-year report by Virgin Money (VM.) in claiming to have seen ‘no change in customer behaviour or impact on business flows’ since the referendum.
The six-year-old bank that operates from more than 40 branches in London and the Southeast backed up this claim by cutting its losses by almost 50% in the second quarter. In the three months to 30 June, pre-tax losses fell to £4.1 million from £7.9 million.
This is a result of the retail, commercial and private bank stealing more business from the larger players.
The loan-book swelled to £4.6 billion at the end of June, a 110% increase in 12 months mainly driven by mortgages. The bank also attracted 74% more deposits to £6.5 billion over the same period.
Shares advanced 7.5% to £20.74 in early trading after the half-year results were posted.
Investors may have piled into the stock on expectations that Metro Bank is on the verge of reporting a maiden profit and to take advantage of a sell-off in the shares following the Brexit vote. The bank lost 60% of its value between 24 June and 26 July to trade at £19.30.
