HOME LOANS IN DEALS’ BATTLE
The boss of Metro Bank says big rivals have flooded the mortgage market with cheap deals.
Craig Donaldson said they’d seen funds “pouring” into home loans ahead of a deadline to ring-fence banks’ retail operations from their investment arms. “If they drop rates, we have to follow,” he said.
Shares in Metro Bank, founded by dog-loving American billionaire Vernon Hill in 2010, dived 12% yesterday despite profits doubling to £15million in the three months to the end of September.
Its net interest margin - the difference between what it makes from taking in money and lending it out - slipped.
Donaldson insisted it was due to raising funds to boost its capital cushion.