StockMarketWire.com - Challenger bank Metro Bank posted hefty first-half losses after it booked expected credit losses of £112m due to the Covid-19 pandemic's impact on borrower's ability to pay back loans.
Pre-tax losses for the six months through June amounted to £240.6m, compared to a profit of £3.4m on-year.
The losses also reflected one-off times including an exit from a central London office and remediation costs.
Loan volumes over the period fell 1% to £14.86bn, while deposit volumes rose 14% to £15.58bn.
'These have been testing times but I'm very proud of the way Metro Bank has demonstrated the benefits of its community banking model, with our colleagues stepping up to support our customers and the local communities we serve,' chief executive Daniel Frumkin said.
'We entered 2020 at the start of our transformation journey, and while the pandemic has weighed heavily on our financial performance, we've made early progress delivering against the strategic priorities set out in February.'
'Our ambition to become the UK's best community bank has never been more important and I'm confident we can build on this progress in the second half of the year.'
Story provided by StockMarketWire.com
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