1 million target for Metro

METRO Bank will smash through the 1m customer mark in the next few days.

The lender was launched seven years ago by US billionaire Vernon Hill as a rival to established scandal-hit giants such as Lloyds and Royal Bank of Scotland.

It now has 48 branches, mostly in London, and made a £2m profit in the first quarter of 2017 – up from a £9.6m loss a year earlier. Deposits have increased by more than half, to £9bn.

The growth is partly down to strong marketing tactics and eye-catching gimmicks such as a dog-friendly policy and offering safety deposit boxes.

Chief executive Craig Donaldson said: ‘We’re profitable on every line, and that will continue. The issue for us now is about growth. We will go through 1m accounts any day now.’

Metro is the only so-called challenger bank which has built up a branch network from scratch without buying in customers from a bigger rival.

It has survived in the face of widespread scepticism about the ability of small lenders to grow under their own steam without signing big deals.

Donaldson said the focus would continue to be on opening more Metro branches, possibly by raising debt on the markets. He ruled out making a bid for Co-op Bank, which is desperately seeking new ownership amid fears it might collapse.

‘I don’t want to buy another business because I’d be buying their legacy,’ he added. ‘It would just slow down our growth.’

Shares fell 1pc, or 36p, to 3550p.