Metro bank reported an underlying loss before tax of £271.8m for 2020, taking an estimated £124m hit from the impact of the Covid-19 pandemic.
It is the second year in a row that the UK bank has reported a loss; in 2019, it reported an £11.7m hit. The loss was due to expected credit loss expense and income challenges, the bank said in its results, released on 24 February.
“Despite the pandemic weighing on our financial performance during the course of the year, we’ve made good progress delivering against the strategic priorities we set out in February 2020 and while there is still much to do, we remain on track to achieve our transformation plan as the UK’s best community bank,” said chief executive Dan Frumkin, who took over the reins in February 2020 from Craig Donaldson.
In its results, the bank reported a statutory loss before tax of £311.4m, more than double 2019’s £130.8m. It said that this was due to both the underlying losses made and “a number of one-off items including the exit from a central London office and remediation costs”.
The accelerated exit from the bank’s office at Old Bailey amounted to a £40.6m hit to the balance sheet, it said in its statement.
The bank also said that it had extended over 36,000 government-backed business loans, totalling £1.5bn.
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