Preliminary Results for Full Year 2016

RNS Number : 4805X

Metro Bank PLC

22 February 2017

 

METRO BANK REPORTS RECORD ANNUAL GROWTH IN DEPOSITS

 AND STRENGTHENING PROFITABILITY

Metro Bank PLC (LSE: MTRO) has delivered a strong trading performance for 2016.

2016 Full Year Highlights

·     Asset growth up 64% year-on-year to £10,057m ($12,370)

·     Record Deposit growth; up 56% year-on-year to £7,951m ($9,780m)

·     Record Lending growth; up 66% year-on-year to £5,865m ($7,214m)

·     Loan to deposit ratio increased to 74%

·     Revenue up 62% year-on-year to £195m

·     Record 260,000 increase in customer accounts to a total of 915,000

·     Strong Common Equity Tier 1 capital ratio at 18.1%

·     Underlying loss before tax¹ at £11.7m (compared to a loss of £46.6m in 2015)

Q4 Highlights

·     Deposits from customers up 9% quarter-on-quarter to £7,951m ($9,780m)

·     Lending up 13% quarter-on-quarter to £5,865m ($7,214m)

·     Revenue up 8% quarter-on-quarter to £57.6m

·     Underlying profit before tax² at £1.5m (£0.6m in Q3 2016)

Note: all figures contained in this announcement are unaudited. All figures in US$ have been translated at a rate of $1.23 to the £. 

Quarter ending £ in millions	31 Dec 2016	30 Sept 2016	Change In Quarter	31 Dec 2015	Change In Year
Assets	£10,057	£9,005	12%	£6,148	64%
Loans	£5,865	£5,193	13%	£3,543	66%
Deposits from customers	£7,951	£7,297	9%	£5,108	56%
Loan to deposit ratio	74%	71%	3 bps	69%	5 bps
Total Revenue	£57.6	£53.4	8%	£34.3
Underlying profit/(loss) before tax	£1.5	£0.6	162%	(£12.5)
Underlying profit/(loss) after tax per share	£0.02p	£0.00p		(£0.17p)
Net interest margin	2.03%	1.95%	8 bps	2.01%

¹Underlying profit/ (loss) before tax for the year excludes listing and related costs and impairment of plant & equipment and intangible assets. Statutory loss before tax at £17.2m (compared to a loss of £56.8m in 2015)

²Underlying profit/ (loss) before tax for the quarter excludes listing and related costs, the FSCS levy and impairment of plant & equipment and intangible assets. Statutory profit before tax at £0.9m (compared to a profit of £0.02m in Q3 2016)

Craig Donaldson, Chief Executive Officer at Metro Bank said:

 "It's been another great quarter and I'm delighted with our full-year performance.  We continue to show significant growth across lending, deposits and customer account numbers with continued integration of technology across all our channels, including stores, creating a compelling service experience for our retail and business customers."

"The year saw continued major investment in technology, stores and colleague training - c. £100m in total - helping us to achieve a 62% full year increase in revenue and our second successive quarter of profitability.  Our absolute focus on creating FANS through our model, culture and fanatical execution goes from strength-to-strength."

Vernon Hill, Chairman and Founder at Metro Bank said:

"The response of the British public to Metro Bank has exceeded our expectations.  Our goal is to create a legendary, emotional brand by creating FANS who join our brand, remain loyal and bring their friends. I'm very proud of the bank's success over the past 12 months, and my thanks go to our colleagues, investors and FANS who are Metro Bank.  I am confident that this is just the beginning, the best is yet to come."

Financial Highlights for the Year and Quarter Ended 31 December 2016

·     As of 31 December total assets were £10,057m, up from £9,005m at 30 September 2016 and £6,148m at 31 December 2015; representing year-on-year growth of 64% and 12% growth in the quarter.

·     Record net deposit growth per store per month of £5.7m ($7.0m) in 2016 compared to £5.3m ($6.5m) in 2015 showing the strength of the network effect.

·     Comparative store deposit growth (a measure of deposit growth using deposit numbers from stores that have been operating for more than a full year) is 51%.

·     The loan to deposit ratio increased to 74% (30 September 2016: 71%; 31 December 2015: 69%).

·     Delivered two consecutive quarters of profitability: underlying profit before tax of £1.5m in Q4 2016 (compared to £0.6m in Q3 2016 and a £3.4m loss in Q2 2016). Statutory profit after tax improved to £0.6m (compared to losses of £0.4m in Q3 2016 and £5.9m in Q2 2016).

·     For the year ended 31 December 2016, underlying loss before tax improved by 75% to £11.7m (2015: £46.6m).  Statutory loss before tax improved to £17.2m (compared to a loss of £56.8m in 2015).

·     Cost of deposits in Q4 was 66bps, a reduction from 80bps in Q3. This reflects deposit re-pricing following the reduction in Base Rate in August and strong growth in current accounts.

·     As of 31 December total deposits were £7,951m, up from £7,297m at 30 September 2016 and £5,108m at 31 December 2015; representing year-on-year growth of 56% and 9% in the quarter. Deposits for the fourth quarter grew £654m. Deposits from commercial customers represent 50% of 31 December 2016 total deposits (30 September 2016: 52%).

	31 December 2016 £'m	30 September 2016 £'m	31  December 2015 £'m	% change in Quarter	% change in Year
Demand: non-interest bearing	2,282	2,019	1,380	13%	65%
Demand: interest bearing	3,513	3,167	2,123	11%	65%
Fixed term	2,156	2,111	1,605	2%	34%
Deposits from customers	7,951	7,297	5,108	9%	56%
Deposits from customers includes:
Deposits from retail customers	3,945	3,537	2,411
Deposits from corporate customers	4,006	3,760	2,697

·     Total loans as of 31 December were £5,865m, up from £5,193m at 30 September 2016 and £3,543m at 31 December 2015; an increase of 66% year-on-year, and a 13% increase in the quarter. Loans to commercial customers represent 36% of total lending as of 31 December 2016 (30 September 2016: 35%).

	31  December 2016 £'m	30 September 2016 £'m	31 December 2015 £'m	%  change in Quarter	% change in Year
Gross Loans and advances to customers	5,872	5,202	3,549
Less: allowance for impairment	(7)	(9)	(7)
Net Loans and advances to customers	5,865	5,193	3,543	13%	66%
Gross loans and advances to customers includes:
Commercial loans	2,087	1,824	1,273	14%	64%
Residential mortgages	3,604	3,202	2,157	13%	67%
Consumer and other loans	181	176	119	3%	52%

·     Asset quality remains strong. Non-performing loans were 0.12% of the loan portfolio and the loan loss reserve as a percentage of non-performing loans was 103% at 31 December 2016.  Cost of risk is 0.10% at 31 December 2016.

·     Capital ratios remain robust and well above regulatory requirements. Common Equity Tier 1 Capital as a percentage of risk weighted assets is 18.1%. Regulatory Leverage ratio is 6.51%.  A move towards the advanced risk based (AIRB) approach in the medium term as well as the potential for Tier 2 debt issuance present an opportunity to achieve greater capital efficiency.

Operational Highlights

·     Customer acquisition goes from strength to strength. Customer accounts have increased from 848,000 on 30 September 2016 to 915,000 at 31 December 2016. This represents an increase of 40% year-on-year and an 8% increase in the quarter.

·     We opened our 48th store in Basingstoke in Dec 2016, one of 8 opened this year, as well as improving our existing network by building a Private Banking suite above the Kings Road store and expanding our contact centre in Slough.

·     Brand Recognition has increased to a record 84% in the London market (compared to 80% in July 2016); rising to 89% for those working full-time and 87% for the ABC1 demographic, according to a recent independent survey conducted by YouGov³.

·     Our continuous investment in technology and innovation has resulted in the delivery of an improved customer experience across channels. We launched a game changing new online commercial banking platform, a new public website, introduced ApplePay as well as being the first UK challenger bank to join the Faster Payments scheme.

·     We've invested in our people, welcoming 500 new colleagues this year, developing the talent within the bank and building strength and depth in the Commercial and Business teams in particular.

Outlook

·     We will strengthen our network with a further 10-12 new stores in 2017 as we continue to in-fill and expand our reach.

·     We achieved quarter on quarter profitability in 2016 and expect to deliver a full year of profitability in 2017.

·     We remain confident in our ability to achieve our 2020 guidance and have seen no significant change in customer behaviour since the European Referendum vote. Our disruptive model continues to go from strength to strength.

·     2020 guidance:

Number of stores	c.110
Average net growth in deposits per store per month	c.£5.25m
Loan to deposit ratio	c.80%
Net interest margin + fees	c.3%
Cost : Income ratio	c.60%
Cost of risk	c.0.20%
Leverage ratio	>4.0%
Return on equity	c.18%

³ Brand awareness figures are from YouGov Plc.  Total sample size was 1,021 adults. Fieldwork was undertaken between 14-17 February 2017.  The survey was carried out online. The figures have been weighted and are representative of all London adults (aged 18+).

Metro Bank PLC

Summary Balance Sheet and Profit & Loss Account

(Unaudited)

	Annual Growth Rate
Balance Sheet
		£m	£m	£m
Assets
Loans and advances to customers	66%	5,865	5,193	3,543
Treasury assets 1		3,727	3,400	2,282
Other assets 2		465	412	323
Total assets	64%	10,057	9,005	6,148
Liabilities
Deposits from customers	56%	7,951	7,297	5,108
Deposits from banks		543	-	-
Other liabilities		759	901	633
Total liabilities		9,253	8,198	5,741
Total shareholder's equity	98%	804	807	407
Total equity and liabilities		10,057	9,005	6,148

	Q4'15 to Q4'16 change
Summary Profit & Loss Account
		£'000	£'000	£'000
Net interest income		46,651	40,926	27,413
Fee and other income		10,470	9,197	6,638
Net gains on securities		525	3,265	254
Total revenue	68%	57,646	53,388	34,305
Operating expenses	26%	(54,585)	(52,078)	(43,423)
Credit impairment charges		(1,577)	(743)	(3,393)
Underlying profit/(loss) before tax	112%	1,484	567	(12,511)
Underlying taxation		(285)	(352)	2,345
Underlying profit/(loss) after tax	112%	1,199	215	(10,166)
Listing and related costs		(568)	(693)	(1,465)
FSCS levy		-	370	-
Impairment of PPE and intangible assets		-	(308)	(7,699)
Write down of deferred tax asset				(2,651)
Statutory loss after tax	103%	631	(416)	(21,981)

1 Comprises investment securities, cash & balances with the Bank of England, and loans and advances to banks

2Comprises property, plant & equipment, intangible assets and other assets

	Annual Growth Rate
Summary Profit & Loss Account
		£'000	£'000
Net interest income		154,240	88,873
Fee and other income		35,475	24,950
Net gains on securities		5,391	6,377
Total revenue	62%	195,106	120,200
Operating expenses	27%	(202,146)	(159,757)
Credit impairment charges		(4,706)	(7,030)
Underlying loss before tax	75%	(11,746)	(46,587)
Underlying taxation		438	9,206
Underlying loss after tax	70%	(11,308)	(37,381)
Listing and related costs		(5,137)	(1,465)
Impairment of plant & equipment and intangible assets		(308)	(7,699)
Write down of deferred tax asset			(2,652)
Statutory loss after tax	66%	(16,753)	(49,197)

Analyst and investor call

An analyst and investor call will be held as follows:

Date: Wednesday 22 February 2017

Time: 2.00pm (GMT)

From the UK dial: 0808 237 0030 (Toll Free)

From the US dial: 1 866 928 7517 (Toll Free)

Participant Pin: 26453234#

URL for other international dial in numbers: http://events.arkadin.com/ev/docs/NE_FEL_Events_International_Access_List.pdf 

An operator will assist you in joining the call.

For more information, please contact:

Metro Bank PLC Press Office

Tina Coates

[phone]

[e-mail] 

Metro Bank PLC Investor Relations

Jo Roberts

[phone]

[e-mail] 

Martin Pengelley/ Latika Shah

Tulchan Communications

[phone]

[e-mail] 

Metro Bank PLC

Preliminary Announcement

For the year ended 31 December 2016

Chief Executive Officer's Statement

Introduction

This has been another amazing year for Metro Bank. We have expanded our network to 48 stores and created 500 jobs serving 915,000 customer accounts, with substantial growth across lending, deposits and customer accounts, as well as delivering two quarters of underlying profit and our first quarterly statutory profit. We continue to show strong deposit growth even as the cost of our deposits falls. This demonstrates that our offering of relevant, convenient high impact stores, UK-based contact centres and easy-to-use online and mobile services is persuasive for retail, business and private customers.

Our customer-focused model and culture and commitment to providing a superior banking experience remain at the forefront of our offering. We remain committed to long-term, sustainable growth and in 2016 invested over £100 million on stores, technology and on training our colleagues.

Results overview

Metro Bank has had an excellent year, generating substantial growth in deposits and lending and achieving the month-on-month profitability we promised in the fourth quarter of 2016. Revenue is up 62% year-on-year and underlying loss before tax is down 75% to £11.7 million, compared to £46.6 million in 2015.

During 2016, we continued to be fully funded by customer deposits, with deposit growth per store of £5.7 million per month. As of 31 December 2016, total customer deposits were £7,951 million, up from £5,108 million at 31 December 2015.

Our strong growth during the year was achieved while maintaining a high-quality balance sheet. At the end of the year, our Common Equity Tier 1 capital ratio was 18.1%, strengthened by our £400 million capital raise, and our leverage ratio was 6.5%. During the year, we continued to manage our balance sheet carefully with a view to maintaining quality and efficiency.

Both the momentum and quality of our lending have been strong, with a 66% year-on-year increase in lending. Strong growth across both residential mortgages and commercial lending has resulted in our loan to deposit ratio further improving to 74%, as we have enabled more businesses to grow and more people to buy their houses.

Our business has not changed as a result of the UK public's decision to exit the European Union in June 2016. The Bank of England's subsequent decision to reduce the UK base rate has been passed on to lending customers and deposit holders. However, our savings promise holds true: we reward loyalty; we won't cut your rate while offering a better rate to new customers.

Our model

A superior retail-focused customer service proposition emphasising simple, straight forward banking turns our customers into FANS. Our focus on making life easier for customers resulted in rapid growth in 2016. Our success speaks volumes of our dedication to providing uncomplicated services and products that people need.

We pride ourselves on our high street presence, with each of our stores firmly rooted in the local community that it serves. Each of our stores hosts a range of initiatives throughout the year to support residents and businesses, from SME networking events to free financial education programmes for schoolchildren.

Our highly motivated and engaged team of colleagues are committed to providing dedicated service to FANS. This customer-centric culture pervades our recruitment and training policies, and we are committed to hiring colleagues with the right attitude as a priority and then training for skill.

Building the bank from the ground up has given us strong advantages; we have connected with local communities and attracted customers and deposits by placing attractive, relevant stores in the right locations. We have created a bank with sound values, superior service levels and state-of-the-art IT infrastructure.

Our FANS

Through our Voice of the Customer programme we analyse customer feedback across all channels - store, telephone, social media, online and app - and use it to constantly improve our offering.

In 2016, our Net Promoter Score - the recognised marketing benchmark gauging customer loyalty - was 78%. That score remains in line with prior years, demonstrating that our customer focus continues as our network expands.  Our brand recognition in February 2017 has risen to 84% across the London market.  And all through word of mouth by our FANS: that's what we call marketing.

Over the year, we have bolstered our offering to commercial customers. Our sector-specialist teams now work with local authorities, social housing organisations, hotels and leisure companies, franchises, property companies, not-for-profit organisations and healthcare companies to name but a few, whilst our Local Directors and Regional Commercial teams support businesses in their local areas. Each team offers a wide range of commercial and mortgage lending products, and each has grown significantly in the last 12 months. Invoice and Asset financing has also continued to deepen the relationship and breadth of our service offering to our customers.

During 2016, our mortgage team continued to grow, and we launched an industry-leading retention proposition focused on customer convenience. This enables intermediary brokers and customers to renew Metro Bank mortgages in less than 30 minutes.

The Private Bank specialist teams continue to thrive and make a material contribution to our rapid growth. They provide a relationship-driven service through simple banking and lending services, and focus on Sports and Entertainment; Boards and Partners; and Entrepreneurs and Commercial Private Clients (for those with combined personal and commercial business interests).

Finally, partnerships, we've continued to partner with complementary wealth management firms and pension providers to provide products and services that our and their customers value, such as our intergenerational mortgage with St James' Place and also our Money Management Accounts.  These partnerships are an important part of Metro Bank and our ability to create FANS.

Integrated service delivery

Through our integrated store, mobile, online and telephone banking services we provide an unparalleled level of tangible convenience for customers. By providing our customers with increasingly seamless access to their banking services across channels, we put control with the customer to use the channel of their choice at a time of their convenience, at any point in the customer journey. Our award-winning, legacy-free IT platform enables us to deliver a faster, more informed, and more secure service to customers without friction across multiple channels and systems.

Throughout 2016, we continued to invest in back office infrastructure; enhancing operational performance and resilience, including implementing more straight through processing and single customer view functionalities; leading cybersecurity controls, such as web application firewalls to protect our external websites, malware detection tools to protect data; and a 24/7 managed security service to monitor our IT infrastructure.

We have also made significant digital investment, with the launch of a new public website with a geo-user interface in August, our game-changing commercial banking platform, launched in November 2016, providing a single customer view dashboard to organisations with subsidiaries, helping businesses to quickly and easily view all companies they operate; and our new mobile app for Business and Personal customers, which provides a new platform onto which much more will be built during 2017. We also became the first UK retail bank to join the Faster Payments Scheme since the service was launched in 2008, and we have now rolled out Apple Pay and Android pay for our customers.

Our 2016 awards

We're proud to be Moneywise's Most Trusted Financial Provider 2016, where we were also awarded another four Moneywise Customer Service Awards for a range of our products and offerings. We were also announced as Bank of the Year at the 2016 City AM Awards and included as one of the London Stock Exchange's "1000 Companies to Inspire Britain" in 2016.  On top of this, we won several technology awards as well as a number of individual awards for colleagues.

Successful listing on the London Stock Exchange

The revolution in British banking entered a new era on 10 March 2016 with the listing of Metro Bank (MTRO) shares on the Main Market of the London Stock Exchange. The successful floatation of Metro Bank followed a private capital raising that saw investors commit £400 million of new funding in support of the Company's growth plans. We will use the funds we have raised to power the next phase in Metro Bank's growth across our integrated service offering.

Plans for the future

Most excitingly of all, this is just the beginning. From a 2010 vision of a revolutionary new bank creating FANS to six years later, 2,500 colleagues serving 915,000 customer accounts and with the best yet to come as we grow towards our 2020 targets and beyond. To Metro Bank's FANS, to the colleagues who serve them and to all our supportive shareholders - thank you.

Craig Donaldson

Chief Executive Officer

Principal Risks and Uncertainties

Metro Bank seeks to adopt best practice in corporate governance, risk management and control appropriate to the size and complexity of the business. Given the nature of the activities undertaken by Metro Bank, principal risks and uncertainties the Bank faces are:

·    strategic risk - the risk that Metro Bank fails to achieve short and long term business objectives because of a failure to maintain its unique culture; maintain its differentiated model through delivering unparalleled levels of service and convenience

·    credit risk - the risk of financial loss due to an obligor's failure to meet the terms of any contract or otherwise fail to perform as agreed

·    market risk - the risk that changes in market prices, such as interest rates or prices of investment securities, will affect the Group's income or the value of its holdings of financial instruments

·    liquidity risk - the risk that the Bank will encounter difficulty in meeting obligations associated with its financial liabilities that are settled by delivering cash or another financial asset

·    conduct risk - the risk that our operating model, culture or actions result in unfair outcomes for customers

·    compliance and regulatory risk - the risk of financial loss or reputational damage due to regulatory fines or penalties, restriction or suspension of business, or cost of mandatory corrective action as a result of failing to adhere to applicable laws, regulations and supervisory guidance

·    operational risk - the risk of direct or indirect loss from failed or inadequate processes, people or systems, or exposure to external events

·    financial crime - the risk of financial loss or reputational damage due to regulatory fines or penalties, restriction or suspension of business, or cost of mandatory corrective action as a result of failing to comply with prevailing legal and regulatory requirements relating to financial crime

The Board has ultimate responsibility for setting the Bank's strategy, corporate objectives and risk appetite. The strategy and risk appetite take into consideration the interests of customers, shareholders and other stakeholders. The Board specifically approves the level of risk which the Bank is willing to accept, and ensures there is an adequate framework in place for reporting

and managing those risks. It is responsible for maintaining an appropriate control environment to manage the principal risks, and for ensuring the capital and liquidity resources are adequate to achieve the Bank's objectives within its risk appetite. 

The Board has delegated responsibility for reviewing the effectiveness of the Bank's internal controls to the Audit Committee. The Audit Committee monitors and considers the internal control environment, focusing on operational risks, internal and external audits and credit assurance, and is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

The Risk Oversight Committee assists the Board in providing leadership, direction and oversight with regard to the Bank's risk governance and management, and also assists the Board in fostering a culture within the Bank that emphasises and demonstrates the benefits of a risk-based approach to risk management and internal control.

The Bank's risk management policies are established to identify and analyse the risks faced by the Bank, to set appropriate risk limits and controls and to monitor risks and adherence to limits. The risk management policies and controls are reviewed regularly to reflect changes in market conditions and the Bank's activities.  Through training and management standards and procedures, the Bank aims to develop a robust and effective control environment in which all colleagues understand their roles and obligations.

Metro Bank's Chief Risk Officer ("CRO") is accountable for leading the risk function, which is independent from the Bank's operational and commercial functions. She is responsible for ensuring that appropriate risk management processes, policies and controls are in place, and that they are sufficiently robust, thereby ensuring that key risks are identified, assessed, monitored and mitigated. The CRO is also responsible for providing assurance to the Board and Directors that the principal risks are appropriately managed and that the Bank is operating within its risk appetite. The CRO has access and a dotted reporting line to the Chairman of the Risk Oversight Committee.

Condensed consolidated statement of comprehensive income

For the year ended 31 December 2016

	Notes	Year ended 31 December 2016 £'000		Year ended 31 December 2015 £'000
Interest income	2	213,486		125,199
Interest  expense	3	(59,246)		(36,326)
Net Interest Income		154,240		88,873
Fee and commission income		22,189		15,713
Net gains on sale of investment securities		5,391		6,377
Other income		13,286		9,237
		195,106		120,200
Operating expenses		(179,767)		(141,563)
Depreciation and amortisation		(22,379)		(18,195)
Fees associated with listing		(5,137)		(1,465)
Impairment of property, plant & equipment and intangible assets		(315)		(8,744)
Total operating expenses		(207,598)		(169,967)
Credit impairment charges		(4,706)		(7,030)
Loss before tax		(17,198)		(56,797)
Taxation	4	445		7,600
Loss for the year		(16,753)		(49,197)
Other comprehensive income for the year
Items which will be reclassified subsequently to profit or loss where specific conditions are met:
Available for sale investments (net of tax):
- fair value gains/(losses)		13,937		(1,327)
- fair value gains transferred to the income  statement on disposal		(5,391)		(6,377)
Total other comprehensive income/(expense)		8,546		(7,704)
Total comprehensive loss for the year		(8,207)		(56,901)
Loss per share - Basic and diluted (pence)	10	(22)		(83)

Condensed consolidated balance sheet

As at 31 December 2016

	Notes	31 December 2016 £'000		31 December  2015 £'000
Assets
Cash and balances with the Bank of England		434,612		217,900
Loans and advances to banks	5	65,816		64,248
Loans and advances to customers	5	5,865,370		3,542,548
Available for sale investment securities	6	604,127		363,807
Held to maturity investment securities	6	2,622,588		1,635,985
Property, plant and equipment	7	246,690		165,257
Intangible assets	8	92,515		54,243
Prepayments and accrued income		43,000		30,456
Deferred tax asset		56,279		53,053
Other assets		26,291		20,525
Total assets		10,057,288		6,148,022
Liabilities
Deposits from customers		7,950,579		5,107,656
Deposits from central banks		543,000		-
Repurchase agreements		653,091		561,778
Other liabilities		106,083		71,413
Total liabilities		9,252,753		5,740,847
Equity
Called up share capital	9	-		-
Share premium account	9	1,027,645		629,304
Retained earnings		(230,193)		(213,440)
Other reserves		7,083		(8,689)
Total equity		804,535		407,175
Total equity and liabilities		10,057,288		6,148,022

Condensed consolidated cash flow statement

For the year ended 31 December 2016

	Notes	Year ended 31 December 2016 £'000		Year ended 31 December 2015 £'000
Reconciliation of loss before tax to net cash flows from operating activities:
Loss before tax		(17,198)		(56,797)
Adjustments for:
Impairment and other write-offs of property, plant and equipment and intangible assets	7,8	793		8,744
Depreciation and amortisation of intangible and tangible assets	7,8	22,379		18,195
Share option charge		1,873		1,675
Gain on sale of securities and fair value gains on derivatives		(5,376)		(6,374)
Accrued interest on and amortisation of investment securities		(4,152)		8,510
Changes in operating assets		(2,341,143)		(1,970,639)
Changes in operating liabilities		3,511,726		2,542,722
Net cash inflows from operating activities		1,168,902		546,036
Cash flows from investing activities
Sales of investment securities		2,196,953		910,546
Purchase of investment securities		(3,403,039)		(1,310,529)
Purchase of property, plant and equipment	7	(97,828)		(49,668)
Proceeds from sale of  property, plant and equipment and intangible assets	7,8	4		-
Purchase of intangible assets	8	(45,053)		(29,907)
Net cash outflows from investing activities		(1,348,963)		(479,558)
Cash flows from financing activities
Share issues	9	403,572		-
Cost of share issues	9	(5,231)		-
Net cash inflows from financing activities		398,341		-
Net increase/(decrease) in cash and cash equivalents		218,280		66,478
Cash and cash equivalents at start of year		282,148		215,670
Cash and cash equivalents at end of year		500,428		282,148
Loss before tax includes:
Interest received		207,678		121,316
Interest paid		(53,246)		(31,058)
Cash and cash equivalents comprise of:
Cash and balances with the Bank of England		434,612		217,900
Loans and advances to banks		65,816		64,248
		500,428		282,148

Condensed consolidated statement of changes in equity

For the year ended 31 December 2016

	Share capital £'000		Share premium account £'000		Retained earnings £'000		Available for sale reserve £'000		Share option reserve £'000		Total equity £'000
Balance as at 1 January 2016	-		629,304		(213,440)		(12,018)		3,329		407,175
Net loss for the year	-		-		(16,753)		-		-		(16,753)
Other comprehensive income, net of tax, relating to available for sale investments	-		-		-		8,546		-		8,546
Total comprehensive income	-		-		(16,753)		8,546		-		(8,207)
Share issue	-		398,341		-		-		-		398,341
Share options at fair value	-		-		-		-		7,226		7,226
Balance as at 31 December 2016	-		1,027,645		(230,193)		(3,472)		10,555		804,535
Balance as at 1 January 2015	-		629,304		(164,243)		(4,314)		1,654		462,401
Net loss for the year	-		-		(49,197)		-		-		(49,197)
Other comprehensive income, net of tax, relating to available for sale investments	-		-		-		(7,704)		-		(7,704)
Total comprehensive income	-		-		(49,197)		(7,704)		-		(56,901)
Share issue	-		-		-		-		-		-
Share options at fair value	-		-		-		-		1,675		1,675
Balance as at 31 December 2015	-		629,304		(213,440)		(12,018)		3,329		407,175
Notes	9		9

The available for sale reserve represents the unrealised change in the fair value of available for sale investments since initial recognition.

Notes

 

1.    Summarised accounting policies

The accounting policies and methods of computation are consistent with those applied in the 2015 Annual Report.  No new accounting policies have been adopted in the period under review, other than the adoption of mandatory accounting standards.

2.    Interest income

	2016		2015
	£'000		£'000
Investment securities	46,528		28,119
Loans and advances to customers	166,958		97,080
Total interest Income	213,486		125,199

3.   Interest expense

	2016		2015
	£'000		£'000
Interest on customer accounts	48,481		27,988
Interest on repurchase agreements	4,900		4,809
Other	5,865		3,529
Total interest expense	59,246		36,326

 

4.    Taxation

Tax credit / (charge) for the year

	2016		2015
	£'000		£'000
Current tax:
UK corporation tax	(177)		-
Adjustment in respect of prior years	-		-
Total current tax	(177)		-
Deferred tax:
Current year	(304)		7,600
Adjustment in respect of prior years	926		-
Total deferred taxation	622		7,600
Total tax credit	445		7,600

4.    Taxation (continued)

Factors affecting the tax credit / (charge) for the year

Total tax paid in relation to income during the year was £nil (December 2015:  £nil). The tax credit on the group's loss before tax differs from the theoretical amount that would arise using the statutory tax rate applicable to the losses of the consolidated entities as follows:

	2016		2015
	£'000		£'000
Loss before tax	(17,198)		(56,797)
Loss on ordinary activities multiplied by standard rate of corporation tax in the UK (20%)	3,440		11,359

Tax effects of:
Expenses not deductible for tax purposes - listing fees	(368)		(296)
Expenses not deductible for tax purposes - other	(3,833)		(453)
Adjustment in respect of prior years	926		-
Change in tax rates on the net deferred tax asset	280		(3,010)
Total tax credit	445		7,600

The Finance Bill 2016 was substantively enacted on 6 September 2015. The Act reduced the main rate of corporation tax to 17% with effect from 1 April 2020. This supersedes the 18% rate effective in the Finance (No.2) Act 2015.

In the 2016 Budget the Chancellor announced from 1 April 2017 there will be a new restriction on the amount of profit that can be offset by brought forward losses. The use of brought forward losses against current year profits will be subject to an annual allowance of £5 million per group and above this allowance there will be a 50% restriction in the profits that can be covered by losses brought forward. This planned legislation has not yet been substantively enacted and therefore does not impact Metro Bank at the Balance Sheet date.

Deferred Tax

A deferred tax asset must be regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not there will be suitable tax profits from which the future of the underlying timing differences can be deducted.  There is no time limit on the recovery of the deferred tax asset.

4.    Taxation (continued)

The analysis of deferred tax assets and deferred tax liabilities is as follows:

	Unused tax losses £'000	Available for sale securities £'000	Share based payments £'000	Property, plant & equipment £'000	Intangible assets £'000	Total £'000
2016
Deferred tax assets	61,403	183	6,840	-	177	68,603
Deferred tax liabilities	-	(1,906)	(645)	(4,478)	(5,295)	(12,324)
						-
At 1 January 2016	56,163	-	1,499	(1,861)	(2,748)	53,053
Income statement	6,267	-	(658)	(2,617)	(2,370)	622
Other comprehensive income	(1,027)	(1,723)	-	-	-	(2,750)
Equity	-	-	5,354	-	-	5,354
At 31 December 2016	61,403	(1,723)	6,195	(4,478)	(5,118)	56,279
2015
Deferred tax assets	56,163	-	1,499	-	-	57,662
Deferred tax liabilities	-	-	-	(1,861)	(2,748)	(4,609)
At 1 January 2015	46,611	-	176	(1,001)	(2,141)	43,645
Income statement	7,747	-	1,323	(860)	(607)	7,603
Other comprehensive income	1,805	-	-	-	-	1,805
At 31 December 2015	56,163	-	1,499	(1,861)	(2,748)	53,053

5.    Loans and advances to customers and banks

Total loans and advances to customers

						31-Dec-2016		31-Dec-2015
						£'000		£'000
Gross Loans and advances to customers						5,872,864		3,549,331
Less: allowance for impairment						(7,494)		(6,783)
Net Loans and advances to customers						5,865,370		3,542,548
Amounts include:
Repayable on demand or at short notice						49,215		38,385

Loans and advances to customers by category

						31-Dec-2016		31-Dec-2015
						£'000		£'000
Individual (retail customers):
Overdraft						66,088		49,701
Credit Cards						7,369		5,976
Term Loans						107,584		63,793
Mortgages						3,604,591		2,156,419
Corporate:
Overdraft						32,613		24,566
Credit Cards						1,681		887
Term Loans						1,874,104		1,111,239
Asset and Invoice Finance						164,295		122,644
Senior Secured Lending						14,539		14,106
Gross Loans and advances to customers						5,872,864		3,549,331

 

5.    Loans and advances to customers and banks (continued)

Loan asset credit quality

All loans and advances are categorised as either 'neither past due nor impaired', 'past due but not impaired', 'individually impaired', or 'collectively impaired'. For the purposes of the disclosures in the loan asset credit quality section below:

-    A loan is considered past due when the borrower has failed to make a payment when due under the terms of the loan contract.

-    The impairment allowance includes allowances against financial assets that have been individually impaired and those subject to collective impairment.

-    Loans neither past due nor impaired and loans that are past due but not impaired consist predominantly of corporate and retail loans that are performing and whilst not individually impaired, may be subject to a collective impairment allowance.

-    Impaired loans that are individually assessed consist predominantly of corporate loans that are past due and for which an individual allowance has been raised.

-    Portfolio impaired loans, which are not included in the categories above, are a subset of collectively impaired loans and consist predominantly of retail loans that are 90 days or more past due.

Credit quality of loans and advances to customers and banks

	31 December 2016
	Loans and advances to customers £'000		Loans and advance  to banks £'000
Neither past due nor impaired	5,762,719		65,816
Past due but not impaired	88,811		-
Individually impaired	6,555		-
Portfolio impaired	14,779		-
Total	5,872,864		65,816
Less: allowance for impairment	(7,494)		-
Total	5,865,370		65,816
Individually impaired	(1,825)		-
Collectively impaired	(5,669)		-
Total	(7,494)		-

 

5.    Loans and advances to customers and banks (continued)

 

	31 December 2015
	Loans and advances to customers £'000		Loans and advances  to banks £'000
Neither past due nor impaired	3,473,856		64,248
Past due but not impaired	60,033		-
Individually impaired	4,562		-
Portfolio impaired	10,880		-
Total	3,549,331		64,248
Less: allowance for impairment	(6,783)		-
Total	3,542,548		64,248
Individually impaired	(3,282)		-
Collectively impaired	(3,501)		-
Total	(6,783)		-

						31-Dec-2016		31-Dec-2015
						£'000		£'000
Allowance for impairment at 1 January						(6,783)		(5,439)
Write offs						3,483		5,686
Balance sheet reclassification of operational loss provision						924		-
Increase in impairment allowance						(5,118)		(7,030)
Allowance for impairment at 31 December						(7,494)		(6,783)

Past due but not impaired

Late processing and other administrative delays on the side of the borrower can lead to a financial asset being past due but not impaired. Gross amount of loans and advances by class to customers that were past due but not impaired were as follows:

5.    Loans and advances to customers and banks (continued)

31 December 2016
	Mortgages £'000		Corporate £'000		Other £'000		Total £'000
Past due less than 6 days	15,994		45,237		958		62,189
Past due 7-30 days	5,859		14,710		1,984		22,553
Past due 31-60 days	2,051		96		631		2,778
Past due 61-90 days	599		60		461		1,120
Over 90 days	-		171		-		171
Total	24,503		60,274		4,034		88,811

31 December 2015
	Mortgages £'000		Corporate £'000		Other £'000		Total £'000
Past due 6 days	8,151		18,520		264		26,935
Past due 7-30 days	15,977		12,014		1,498		29,489
Past due 31-60 days	1,223		425		427		2,075
Past due 61-90 days	745		189		265		1,199
Over 90 days	-		335		-		335
Total	26,096		31,483		2,454		60,033

Residential mortgage lending

The table below stratifies credit exposures from mortgage loans and advances to customer by ranges of loan-to-value (LTV) ratio.  LTV is calculated as the ratio of the gross amount of the loan to the value of the collateral.  The gross amounts exclude any impairment allowance.  The valuation of the collateral excludes any adjustments for obtaining and selling the collateral.  The value of the collateral for residential mortgage loans is based on the collateral value at origination updated based on changes in house price indices.

				31-Dec-16		31-Dec-15
LTV ratio				£'000		£'000
Less than 50%				1,121,993		594,444
51-70%				1,635,626		962,994
71-90%				756,025		495,921
91-100%				41,224		46,219
More than 100%				49,723		56,841
Total				3,604,591		2,156,419

Loans and advances to corporate customers

The general credit worthiness of a corporate customer tends to be the most relevant indicator of credit quality of a loan extended to it.  However, collateral provides additional security and the Bank generally requests that corporate borrowers provide it.  The Bank may take collateral in the form of a first charge over real estate, floating charges over all corporate assets and other liens and guarantees.

5.    Loans and advances to customers and banks (continued)

Concentrations of credit risk

The Bank monitors concentrations of credit risk by sector for commercial term exposure. The Bank risk appetite is set at the beginning of every year and monitored as part of the Board committee.

 

Industry Types - Commercial		Concentration			Concentration
		31 December 2016			31 December 2015
		£'000	(%)		£'000	(%)
Real estate (rent, buy and sell)		1,064,194	57%		627,904	57%
Legal, Accountancy & Consultancy		276,164	15%		133,848	12%
Health & Social Work		177,931	10%		95,722	9%
Hospitality		95,600	5%		40,007	4%
Real estate (management of)		90,240	5%		46,707	4%
Construction		58,204	3%		39,116	4%
Retail		37,009	2%		80,030	7%
Investment & Unit Trusts		20,448	1%		-	-
Recreation, cultural & sport		8,643	-		6,859	1%
Real estate (development)		2,036	-		-	-
Education		1,484	-		3,289	0%
Other		42,151	2%		37,757	3%
		1,874,104	100%		1,111,239	100%

Commercial exposures represent a growing part of the total lending portfolio.  The average debt-to-value ("DTV") of the commercial loan book is stable and below 60%. The proportion of lending with DTV above 80% has been decreasing over the last 4 years and is now stable at 6%. Collections performances continue to improve.  DTV is calculated as the ratio of the gross outstanding amount of a loan to the indexed value of the collateral.

			31-Dec-16		31-Dec-15
			£'000		£'000
Total commercial lending			2,087,232		1,273,442
% of total lending			36%		36%
Average DTV			57%		57%
DTV > 80%			6%		6%
NPL (non-performing-loan) ratio*			0.1%		0.1%

* The non-performing-loan ratio is calculated as the ratio of the gross outstanding amount of loans with more than three instalments unpaid to the total gross outstanding amount.

 

6.    Investment securities

Fair values of investment securities held at fair value	Level 1		Level 2		Total
	£'000		£'000		£'000
Recurring fair value measurements
As at 31 December 2016
Financial investments: available for sale	274,027		330,100		604,127
As at 31 December 2015
Financial investments: available for sale	189,309		174,498		363,807

The classification of a financial instrument is based on the lowest level input that is significant to the fair value measurement in its entirety. The two levels of the fair value hierarchy are defined below.

6.    Investment securities (continued)

Quoted market prices - Level 1

Financial instruments are classified as Level 1 if their value is observable in an active market. Such instruments are valued by reference to unadjusted quoted prices for identical assets or liabilities in active markets where the quoted price is readily available, and the price represents actual and regularly occurring market transactions on an arm's length basis. An active market is one in which transactions occur with sufficient volume and frequency to provide pricing information on an ongoing basis.

Valuation technique using observable inputs - Level 2

Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly (as prices) or indirectly (derived from prices).

Reclassifications between categories

On 31 May 2016, £25.4 million of financial assets classified as available for sale were reclassified as held to maturity.  On 22 November 2016, £14.9 million of financial assets classified as available for sale were reclassified as held to maturity.  The carrying amount (including accrued interest) and fair value of the assets at 1 January 2016, 31 May 2016, 22 November 2016 and 31 December 2016 were as follows:

	Carrying amount		Fair value
	£'000		£'000
At 31 December 2016	40,329		40,872

A fair value gain of £0.06 million was recognised with respect to the reclassified assets in 2016; had these assets not been reclassified, a fair value gain of £0.55 million would have been recognised in other comprehensive income.  The effective interest rates on available for sale assets reclassified to held to maturity at 1 January 2016 and 31 December 2016 ranged from 1.4% to 1.8%, with all cash flows expected to be recoverable.

At 31 December 2016, financial investments classified as held to maturity were as follows:

	Carrying amount		Fair value
	£'000		£'000
At 31 December 2016	2,622,588		2,651,136
At 31 December 2015	1,635,985		1,629,527

7.    Property, plant and equipment

	Leasehold improvements     £'000		Freehold land and buildings £'000		Fixtures, fittings and equipment £'000		IT Hardware £'000		Total  £'000
Cost or valuation
01-Jan-2016	156,238		8,273		17,400		27,439		209,350
Additions	46,444		44,672		3,417		3,295		97,828
Disposals	-		-		-		(3)		(3)
Transfers	(31,626)		31,626		-		-		-
31-Dec-2016	171,056		84,571		20,817		30,731		307,175
Accumulated depreciation
01-Jan-2016	17,110		-		7,920		19,063		44,093
Impairments	35		-		161		44		240
Charge for the year	6,800		1,000		2,834		5,054		15,688
Other write offs	413		-		22		29		464
Disposals	-		-		-		-		-
Transfers	(2,376)		2,376		-		-		-
31-Dec-2016	21,982		3,376		10,937		24,190		60,485
Net book value	149,074		81,195		9,880		6,541		246,690

8.    Intangibles

Group	Goodwill		Customer contracts		Software
							Total
	£'000		£'000		£'000		£'000
Cost or valuation
01-Jan-2016	4,140		600		56,745		61,485
Additions	-		-		45,053		45,053
Disposals	-		-		(1)		(1)
31-Dec-2016	4,140		600		101,797		106,537
Amortisation
01-Jan-2016	-		145		7,097		7,242
Impairments	-		-		75		75
Charge for the year	-		60		6,631		6,691
Other write offs	-		-		14		14
31-Dec-2016	-		205		13,817		14,022
Net book value	4,140		395		87,980		92,515
Group	Goodwill		Customer contracts		Software
							Total
Cost or valuation	£'000		£'000		£'000		£'000
01-Jan-2015	4,140		600		35,319		40,059
Additions	-		-		29,907		29,907
Impairment	-		-		(8,481)		(8,481)
31-Dec-2015	4,140		600		56,745		61,485
Amortisation
01-Jan-2015	-		85		5,305		5,390
Impairment	-		-		(1,430)		(1,430)
Charge for the year	-		60		3,222		3,282
31-Dec-2015	-		145		7,097		7,242
Net book value	4,140		455		49,648		54,243

9.    Share capital

As at 31 December 2016 the Group had 80.3 million A ordinary shares of 0.0001 pence (31 December 2015: 59.2m) in issue.

In March 2016, the bank issued 20.0 million A ordinary shares of 0.0001 pence each, for consideration of £400 million. Related transaction costs of £5.2 million have been deducted from equity during the period.

Additionally during the year, the Group issued 1,132,142 A ordinary shares; of which 900,818 relate to conversion of 1 million B ordinary shares, 152,130 relate to Executive share awards and 79,194 relate to the exercise of previously awarded share options.  These transactions contributed £3.6m to share premium.

	31-Dec-2016		31-Dec-2015
	£'000		£'000
Called up ordinary share capital, issued and fully paid
At beginning of period	-		-
Issued	-		-
At end of period	-		-
	31-Dec-2016		31-Dec-2015
	£'000		£'000
Share premium account
At beginning of period	629,304		629,304
Issued	403,572		-
Costs of share issued	(5,231)		-
At end of period	1,027,645		629,304

10.  Loss per share

Basic loss per share is calculated by dividing the loss attributable to ordinary equity holders of Metro Bank by the weighted average number of ordinary shares in issue during the period.

Diluted loss per share has been calculated based on the same loss attributable to ordinary equity holders of Metro Bank and weighted average number of ordinary shares in issue after the effect of adjustment for potential dilutive ordinary shares, which comprise share options granted to colleagues. Potential ordinary shares should only be treated as dilutive when their conversion to ordinary shares results in a reduction in earnings per share or an increase in loss per share. As Metro Bank has a loss attributable to ordinary equity holders of Metro Bank in 2016 and 2015 for these years, the share options would be antidilutive, as they would reduce the loss per share. Therefore, they are disregarded in the calculation of dilutive earnings per share. However, the share options could potentially be dilutive in the future.

	2016		2015
	£'000		£'000
Loss attributable to ordinary equity holders of Metro Bank	(16,753)		(49,197)
Weighted average number of ordinary shares in issue (000's)	76,791		59,208
Basic and diluted loss per share (pence)	(22)		(83)

11. Fair value of financial instruments

The fair values of financial instruments are based on market prices where available, or are estimated using other valuation techniques. Where they are short term in nature or re-price frequently, fair value approximates to carrying value. Apart from investment securities all other assets and liabilities are deemed to have a fair value hierarchy of level 3. Level 3 is defined as - inputs for the asset or liability that are not based on observable market data (unobservable inputs). This level includes equity investments and debt instruments with significant unobservable components.

				With
		Quoted	Using	significant
		market	observable	unobservable
	Carrying	price	inputs	inputs	Total
	Value	Level 1	Level 2	Level 3	Fair Value
31-Dec-2016	£'000	£'000	£'000	£'000	£'000
Assets
Cash and balances with the Bank of England	434,612				434,612
Loans and advances to banks	65,816			65,816	65,816
Loans and advances to customers	5,865,370			6,093,436	6,093,436
Investment securities	3,226,715	877,226	2,378,037		3,255,263
Liabilities
Deposits from customers	7,950,579			7,946,687	7,946,687
Deposits from central banks	543,000			543,000	543,000
Repurchase agreements	653,091				653,091
31-Dec-2015
Assets
Cash and balances with the Bank of England	217,900				217,900
Loans and advances to banks	64,248			64,248	64,248
Loan and advances to customers	3,542,548			3,614,877	3,614,877
Investment securities	1,999,792	657,681	1,335,653		1,993,334
Liabilities
Deposits from customers	5,107,656			5,095,942	5,095,942
Repurchase agreements	561,778				561,778

For the cash and balances with the Bank of England and repurchase agreements, the carrying value approximates to the fair value, and therefore no pricing level has been identified for them above.

Information on how fair values are calculated for the financial assets and liabilities noted above are explained below:

(a) Cash and balances with the Bank of England / Loans and advances to banks

Fair value is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the balance sheet date.  Fair values approximate carrying amounts as their balances are generally short dated.

11.  Fair value of financial instruments (continued)

(b)   Loans and advances to customers

Fair value is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the balance sheet date, adjusted for future credit losses and prepayments, if considered material.

(c)   Investment securities

The fair value of investment securities is based on either observed market prices for those securities that have an active trading market (fair value level 1 assets), or using observable inputs (in the case of fair value level 2 assets).

(d)    Deposits from customers

Fair values are estimated using discounted cash flows, applying current rates offered for deposits of similar remaining maturities. The fair value of a deposit repayable on demand is approximated by its carrying value.

(e)   Deposits from central banks / repurchase agreements

Fair values are estimated using discounted cash flows, applying current rates. Fair values approximate carrying amounts as their balances are generally short dated.

 

12. Related party transactions

Architecture, design and branding services are provided to the bank by InterArch, Inc. ("InterArch") a firm which is owned by Shirley Hill, the wife of Vernon W. Hill II the Non-Executive Chairman.  The cost of these services in the year was £3.2 million (2015: £2.3m).  The balance owed to InterArch at 31 December 2016 was £0.4 million (31 December 2015: £0.2 million).

13. Post Balance Sheet Events

There have been no material post balance sheet events.

ENDS

About Metro Bank

Retail banking:

·      7 day a week store banking (8am-8pm Monday to Friday, 8am-6pm Saturday, 11am-5pm Sunday and bank holidays), 362 days of the year

·      The ultimate in new account opening convenience, with a rapid opening procedure and on the spot bank cards and cheque books (Account Opening conditions apply. All Metro Bank products are subject to status and approval.)

·      Free coin counting at every store, for customers and non-customers alike, with the Metro Bank Magic Money Machine™

·      A friendly welcome to dogs and their owners, with water bowls and dog biscuits on hand for man's best frie-d - dogs rule at Metro Bank!

Business banking:

·      The bank for entrepreneurs: Metro Bank offers tailored business banking services including a full range of lending and cash management solutions

Private banking:

·      Private by name, personal by nature: Metro Bank Private Banking provides bespoke banking solutions for customers' personal and commercial interests

Metro Bank PLC. Registered in England and Wales. Company number: 6419578. Registered office: One Southampton Row, London, WC1B 5HA. 'Metrobank' is the registered trade mark of Metro Bank PLC.

We're authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Most relevant deposits are protected by the Financial Services Compensation Scheme. For further information about the Scheme refer to the FSCS website www.fscs.org.uk.

All Metro Bank products are subject to status and approval.

Forward looking statements

This announcement may include statements that are, or may be deemed to be, forward-looking statements. Forward-looking statements typically use terms such as "believes", "projects", "anticipates", "expects", "intends", "plans", "may", "will", "would", "could" or "should" or similar terminology. Any forward-looking statements in this announcement are based on the Company's current expectations and, by their nature, forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control, that could cause the Company's actual results and performance to differ materially from any expected future results or performance expressed or implied by any forward-looking statements. As a result, you are cautioned not to place undue reliance on such forward-looking statements. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, expressed or implied, is made regarding future performance.

No assurances can be given that the forward-looking statements in this announcement will be realised. The Company undertakes no obligation to release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement and the Company disclaims any such obligation.

 

END

 

 

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