Metrobank's net lending totaled £9.1bn in the third quarter of this year, down 22% on the previous three months following the sale of its mortgage portfolio.
Customer deposits were £15.1bn at the end of September, down £1.4bn from February's “peak of around £16.5bn” and down £15.7bn in the previous quarter, but this was due to a “continued focus on improving deposit costs”. “It reflects what we do.” 
However, management said that “the bank returned to profitability in October” and did not provide further details in a short trading report for the third quarter.
Metrobank CEO Daniel Frumkin said: “Our continued focus on cost discipline and balance sheet management returned the bank to profitability in October, in line with guidance.”
“Net interest margin improved due to asset rotation into niche and underserved markets and the successful sale of our mortgage portfolio to NatWest.”
“Strong cost controls and a strong pipeline support our focus on high-yield commercial, corporate, small business, and professional mortgages, and we are moving forward with positive momentum. This is an area where our established relationship banking model can win us over and create new fans.”
Shares rose 1.2% to 85.5p in late morning trading.
The bank also reported that the Financial Conduct Authority had completed an investigation into its “historic financial crime systems and controls”, resulting in a £16 million fine announced today.
In July, NatWest agreed to buy a £2.5bn portfolio of prime UK mortgages from Metro.
The deal will see up to £2.4bn in cash paid and around 10,000 customer accounts transferred from Metro to NatWest, although the accounts will continue to be serviced by smaller banks.
