BUSINESS LIVE: GDP returns to growth; Metro Bank losses narrow; The Gym Group plots more site launches

Metro Bank’s losses narrowed last year, supported by its cost-cutting efforts and as capital outflows stabilized towards the end of the year after a last-minute capital injection.

The lender, which was set up in 2010 to challenge the dominance of Britain’s big banks, reported an underlying pre-tax loss of £16.9m, compared with a loss of £50.6m last year.

Chief Daniel Frumkin said:

‘Looking ahead, I remain confident in our ability to be the number one community bank.

‘The work we have undertaken this year has paved the way for us to become a structurally profitable business and our focus on the SME sector, commercial mortgages and specialist mortgages presents an exciting opportunity in an underserved area of ​​the market.

“I remain grateful for the continued support of our colleagues, customers and shareholders as we embark on the next chapter of our journey.”

Starling Bank has poached the chief executive of energy supplier Ovo as the group considers a public listing.

The disruptive bank said Raman Bhatia, 45, who previously led HSBC’s digital bank in the UK and Europe, would replace interim chief executive John Mountain in the summer, subject to regulatory approval.

Jeremy Batstone-Carr, European Strategist at Raymond James Investment Services:

‘This economic recovery is due to a rebound in retail sales, and forward-looking indicators confirm that the economy will continue to improve in the coming months.

‘The recovery in the retail sector has proven sufficient to offset stagnation in other parts of the economy, particularly industrial and manufacturing production. The retail sector has also countered strikes by junior doctors and railway workers that slowed activity in the transport and healthcare sectors.

«What is more encouraging is that the Bank of England’s cautious forecast of 0.1% growth during the first quarter of 2024 is on track to be exceeded. However, continued evidence of inflationary pressures will likely deter interest rate setters from reducing borrowing costs for the time being.

Tom Stevenson, chief investment officer at Fidelity International:

“The UK’s brief, shallow recession may already be over. GDP growth in January was, as expected, 0.2%, driven by a stronger services sector.

‘Despite the return to growth, there was still a modest contraction during the three months from November to January compared to the previous three months. Coupled with yesterday’s rise in unemployment and slowing wage growth, this shows that the UK economy is not out of the woods yet.

‘The Bank of England is likely to sit idle for the first half of the year while it waits for a clearer picture of where growth and inflation are heading.

‘However, the recovery from the shallow recession during the second half of 2023 is based on the more positive tone from the Office for Budget Responsibility, which last week raised its growth forecasts to 0.8% for 2024 and 1, 9% in 2025.

“The improving outlook for the UK economy is likely to lead to a positive change in sentiment towards the UK stock market, which has lagged its international peers during the strong recovery from the trough. last fall.”

The UK economy returned to growth in January with GDP rising 0.2 per cent on the month, after falling into recession in the final quarter of 2023, according to new data from the Office for National Statistics.