Metro Bank PLC reported Wednesday a significantly widened pretax loss for 2020 and said it expects to book a significant credit loss linked to the coronavirus pandemic.
The U.K. retail bank posted a pretax loss of 311.4 million pounds ($439.5 million), compared with a loss of GBP130.8 million for the year-earlier period. This performance reflects an underlying loss of GBP271.8 million and several one-off items including the exit from a central London office and remediation costs, it said.
Interest income fell to GBP426.3 million from GBP496.2 million, while total income increased to GBP432.6 million from GBP415.6 million, it said.
Metro Bank’s common equity Tier 1 capital ratio–a measure of a bank’s financial strength–stood at 15.0%, compared with 15.6% as of Dec. 31, 2019.
The lender said it estimates a GBP124 million hit from the coronavirus pandemic, comprising a Covid-19 expected credit loss, or ECL, expense of around GBP100 million and lower transaction-fee income.
Write to Sabela Ojea at [email protected]; @sabelaojeaguix