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Britain’s Metro Bank returned to profit in September, sees no customer stress
Global Banking & Finance Review®
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LONDON (Reuters) – Me YouTubetro Bank said on Wednesday it returned to profit in September by keeping a tight rein on costs and has so far seen no sign of increased stress among its customers as Britain grapples with higher interest rates and an escalating cost of living crisis.
The bank set aside a 10 million pound ($11.49 million) provision in case of losses on loans, and it expects its net interest margin to continue to increase through 2023 as interest rates climb.
“There has been no deterioration in early warning indicators and no signs of stress or increased delinquency across the customer base,” the bank said in third quarter trading update.
($1 = 0.8703 pounds)
(Reporting by Huw Jones, editing by Sinead Cruise)
Loan provisioning refers to the practice of setting aside a portion of a bank's earnings to cover potential losses from loans that may not be repaid.
Customer stress in banking refers to the financial strain experienced by customers, often leading to increased delinquency on loans and other financial obligations.
Early warning indicators are metrics or signs that suggest potential problems in a bank's loan portfolio or customer base, allowing for proactive management.
A trading update is a report issued by a company to inform investors about its financial performance and business conditions during a specific period.
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