Metro Bank says on track to deliver on strategy, return to profit

MADRID (Reuters) - British challenger lender Metro Bank said on Wednesday it was on track to deliver rising profits and achieve its strategic objectives after reporting first-quarter net loans and deposits at similar levels to the previous quarter.

"We remain focused on executing our plans and returning the Bank to profitable growth whilst supporting our customers, communities and colleagues in what continues to be a changing macro-economic environment," Chief Executive Officer Daniel Frumkin said in a statement.

Metro posted total first quarter deposits of 16.5 billion and total net loans of 12.3 billion.

The bank, known for its brightly-coloured high street branch network and quirky customer service, flagged growth in demand across its business and retail instant access and current accounts as well as a further reduction in higher-cost fixed term deposits, in line with its strategic plan.

Continued strong growth in consumer lending and specialist mortgages also helped to mitigate the attrition of lower-yielding residential mortgages and commercial term loans, it added.

(Reporting by Andres Gonzalez, editing by Sinead Cruise)