Metro Bank reported that its specialist mortgage lending jumped by greater than three-quarters in the primary six months of the 12 months, though its general residence mortgage numbers had been flat.
The agency stated that its gross retail mortgage lending got here in at £5.2bn in the half-year to the tip of June in a buying and selling assertion, broadly flat from the tip of final 12 months.
However, the enterprise added that its specialist mortgage lending jumped by 78% in the interval to £1.2bn. Its prime residence mortgage underwriting fell 12% to £4bn.
The agency has shifted in direction of landlord lending and residential underwriting to debtors with sub-prime credit score histories over the previous three years, or so.
Metro Bank chief government Daniel Frumkin stated: “We proceed our strategic shift to company, business, and SME lending, and specialist mortgages at tempo.
Frumkin added: “We proceed to improve our specialist proposition and launched two additional merchandise, homes in a number of occupancy and multi-unit freehold blocks in July.
“New lending, along with attrition of legacy portfolios at decrease yields, has led to a 49 foundation factors year-on-year enchancment in general yield.”
The financial institution added that its “mortgage portfolio is concentrated inside London and the South East, which is consultant of our unique buyer base and retailer footprint.
“We are increasing our footprint, which can cut back the geographical focus of lending over time.”
Also, final September, the financial institution bought a portfolio of round £2.5bn of prime residential mortgages to NatWest.
Frumkin stated: “We proceed to run off low-yielding legacy portfolios, and substitute them with high-yielding company, business and SME lending and specialist mortgages.”
The financial institution posted an underlying pre-tax revenue of £45.1m, greater than tripling the £12.8m it reported in the earlier six-month interval.
