# Metro Bank posts second quarter of profitability on mortgage loans demand
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-03
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Metro Bank Reports Profit Growth in Strongest March
Meta Description: Discover how Metro Bank achieved consecutive profitable quarters through increasing demand for mortgage loans and strategic financial measures.
URL: https://financedigest.com/metro-bank-posts-second-quarter-of-profitability-on-mortgage-loans-demandhtml

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(Reuters) – Metro Bank on Wednesday said it had reached underlying profitability for the second consecutive quarter, as net inflows picked up pace in March on a revival in demand for mortgage loans.

For Metro Bank, which in 2010 became the first lender to be granted a high-street banking licence in Britain in 150 years, the profitability status caps over two tumultuous years after an accounting scandal in 2019 prompted probes by UK regulators.

“March has been our strongest month of performance since the turnaround commenced,” Chief Executive Daniel Frumkin said in a statement.

British banks have also seen a profit boost from successive rate [hikes](https://www.financedigest.com/marketmind-rba-shock-hike-starts-huge-week-for-central-banks.html "Marketmind: RBA shock hike starts huge week for central banks") by the Bank of England, designed to curb rampant inflation, as they profit on the gap between what they charge on lending and pay out on deposits.

Retail mortgage lending [increased marginally to 7.7 billion](https://www.financedigest.com/simalliance-members-report-shipments-of-4-9-billion-sims-in-2017-while-estimated-total-available-sim-market-in-2017-increases-2-75-to-5-6-billion-units.html "SIMalliance Members Report Shipments of 4.9 Billion SIMs in 2017, while Estimated Total Available SIM Market in 2017 Increases 2.75% to 5.6 Billion Units   ") pounds in the three months ended March 31.

Metro Bank’s first-quarter total deposits dropped, compared with the prior quarter, as the lender [faced seasonal factors such as higher tax payments](https://www.financedigest.com/why-contactless-has-changed-the-face-of-payments-in-the-uk.html "Why contactless has changed the face of payments in the UK") in January.

Total deposits stood at 15.6 billion pounds ($19.48 billion)in the first quarter, compared with 16.01 billion pounds in the three-month period ended Dec. 31.

Meanwhile, total loans remained broadly flat quarter-on-quarter at 12.92 billion pounds, on weak [consumer and commercial lending](https://www.financedigest.com/equiniti-credit-services-investigates-consumer-attitudes-to-lending-in-new-report.html "Equiniti Credit Services investigates consumer attitudes to lending in new report").

($1 = 0.8010 pounds)

(Reporting by Eva Mathews in Bengaluru; Editing by Sherry Jacob-Phillips and Nivedita Bhattcharjee)


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