off-the-wire

UPDATE 1-Metro Bank flags limited growth in 2023 net interest margin

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds details and background) March 2 (Reuters) - Metro Bank posted a narrower annual loss on Thursday, but said its net interest margin growth will be limited in 2023 as the British mid-sized lender expects fewer base rate moves and inflationary pressures to outweigh its cost initiatives. Banks that saw an increase in their profit amid a rise in interest rates are now struggling with rampant inflationary pressures and a cost-of-living crisis.


Metro Bank, which has had a tumultuous few years after an accounting blunder back in 2019 led to fines and probes by the UK regulators, saw its net interest margin - a key measure of profitability - improve by 52 basis points to 1.92% for the year ended Dec. 31.


The London-based company posted a full-year underlying pre-tax loss of 50.6 million pounds ($60.63 million), compared with a loss of 171.3 million pounds last year. ($1 = 0.8346 pounds)


(Reporting by Sinchita Mitra in Bengaluru; Editing by Sherry Jacob-Phillips)

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