UK lender Metro Bank has reported its first annual profit, driven by strong growth in residential mortgages and commercial lending.
The company, which listed on the London Stock Exchange in 2016, also raised its 2020 targets and said it would open 12 branches this year, creating 900 jobs.
The lender raised its 2020 loan-to-deposit ratio target to a range of 85-90% from its previous target of about 85%. Its loan-to-deposit ratio rose to 82% in the fourth quarter ended December 31.
The bank also increased its 2020 deposits per store per month forecast to a range of £5.5-6.5m, from its previous forecast of £5.25m.
But it cut the expected number of branches to about 100 from about 110.
Metro Bank is one of Britain's "challenger banks" that emerged after the financial crisis to fill a gap in small business lending and capitalise on problems at bigger lenders such as Royal Bank of Scotland and Lloyds Banking Group.
Metro Bank, which offers retail, business and private banking, reported a full-year underlying profit before tax of £20.8m. This compares with a loss of £11.7m a year earlier.
The company's lending rose 64% to £9.6 billion.
"As we enter new markets across the country, we will continue to bring real competition and choice for banking customers," CEO Craig Donaldson said.
