Metro Bank has reported that its underlying loss after tax was down to £7.9m in the first quarter of 2016, compared to £10.2m in Q4 2015.

During the first three months of the year its total loans increased 125% year-on-year to £4,129m and revenue was up 60% year-on-year.

Meanwhile, total deposits were up 75% year-on-year to £5,898m.

Craig Donaldson, Metro Bank’s CEO, said: “We have had a strong opening quarter in 2016. I am particularly pleased with the momentum and quality of our lending; net lending increased by 125% per cent year on year to £4.1 billion driven by strong growth in both residential mortgages and commercial lending.

“Total deposits increased 75% year-on-year to £5,898m with deposits coming from a diversified mix of both businesses and retail customers.

“We continue to move towards profitability with revenue up 60% year-on-year and the underlying quarterly loss after tax down to £7.9m (compared to £10.2m in the final quarter of 2015); an improvement of 23% quarter-on-quarter.”

Vernon Hill, chairman and founder, added: “We continue to create a banking revolution by building Metro Bank into a major banking force in the UK. Our constant focus on customer service and convenience across all our channels, supported by our flexible IT and powerful AMAZE culture, continues to differentiate us, and provide a compelling competitive advantage in the UK market.

“Every day we welcome new customers into our stores and make them fans with our exceptional customer service.”