Metro bank has reported pre-tax losses of £245 million in 2021, down from £311 million recorded in the previous year.

The loss follows the settlement of an investigation by the Prudential Regulation Authority (PRA), provisioning for a Financial Conduct Authority (FCA) investigation, sanctions related remediation and non-recurring expense items.

Last year the PRA imposed a £5.3 million fine on Metro for failing in its regulatory reporting and governance and controls.

The bank reported a 17 per cent hike in revenue for 2021, up to £397.9 million.

The bank said that the increase reflects the shift towards higher yielding assets, lower cost of deposits, and a recovery in customer activity.

"Two years into the turnaround, our strategy is delivering meaningful results as we move towards profitability. In a changing macro-economic environment, we have accelerated the shift of our balance sheet, with improved yields and lower cost of deposits,” said Daniel Frumkin, chief executive, Metro Bank. “This has had a material impact on underlying revenue, which improved 42 per cent when adjusting for the mortgage portfolio disposal. Encouragingly, the second half of the year delivered even stronger revenue and exit-NIM performances, providing ongoing momentum into 2022.

“There is still more to do, but our focus on delivering higher margins through unsecured and specialist mortgage lending, as well as tight cost control, is enabling transformational change. We remain committed to delivering on the strategy we set out, including supporting the communities in which we operate."

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