On Wednesday, Britain’s Metro Bank reported its first ever $313.92 million loss of the year because of provisions to cover losses due to the coronavirus crisis which wiped out its profits.
Founded in 2015, Metro Bank which was started to take on incumbent high street lenders, said it took a 109 million pound hit from the COVID-19 pandemic, mostly from rising expected loan losses as well as lower transaction fees.
The bank had made a 3.4 million pound profit for the same, January to June period, a year ago.
“While the pandemic has weighed heavily on our financial performance, we’ve made early progress delivering against the strategic priorities set out in February,” said Daniel Frumkin, the bank’s CEO.
On Monday, Metro Bank had said, it had agreed to acquire peer-to-peer platform RateSetter for an initial amount of 2.5 million pounds, in an effort to bump up its revenue streams.
Metro Bank’s core capital ratio fell from 15.6 to to 14.5% at the end of December.
It is too early to say whether the coronarivus pandemic will impact its 2024 financial targets, said the bank.
($1 = 0.7645 pounds)