Metro Bank’s pre-tax losses for 2021 hit £245.1m, which marks an improvement on the £311.4m loss seen a year earlier due to Covid-19.
Underlying revenue increased by 17% to £397.9m reflecting the shift towards higher-yielding assets, lower cost of deposits and a rebound in customer activity.
Metro Bank CEO Daniel Frumkin said: “Two years into the turnaround, our strategy is delivering meaningful results as we move towards profitability.
“In a changing macro-economic environment, we have accelerated the shift of our balance sheet, with improved yields and lower cost of deposits.
“This has had a material impact on underlying revenue, which improved 42% when adjusting for the mortgage portfolio disposal.
“Encouragingly, the second half of the year delivered even stronger revenue and exit-NIM performances, providing ongoing momentum into 2022.
“There is still more to do, but our focus on delivering higher margins through unsecured and specialist mortgage lending, as well as tight cost control, is enabling transformational change.
“We remain committed to delivering on the strategy we set out, including supporting the communities in which we operate.”
Following a period of fast-paced growth following its launch in 2010, the bank hit financial troubles in 2019, after announcing it did not have sufficient capital to meet regulatory requirements.
And last week saw the departure of its CFO sparking rumours of looming poor results.
In terms of the lending book retail mortgages remained the largest component at 54%, down from 56% in 2020.
Loan to deposit ratio held at stable 75% reflecting the impact of the mortgage portfolio disposal in December 2020 and capital constraints on lending.
