Customer deposits came in at £15.1bn at the end of September, down £1.4bn on their February “peak of around £16.5bn,” and £15.7bn in the previous quarter, which “reflects the continued focus on improving cost of deposits”.

However, its management says “the bank returned to profitability in October,” without giving further details in a short third quarter trading statement.

Metro Bank chief executive Daniel Frumkin said: “The bank returned to profitability in October, in line with guidance, and thanks to our continued emphasis on cost discipline and balance sheet management.

“Net interest margin improved, driven by our asset rotation into niche and underserved markets, and the successful completion of the mortgage portfolio sale to NatWest.”

“We have positive momentum moving forward, with strong cost control and a robust pipeline supporting our pivot towards higher yielding commercial, corporate, SME and specialist mortgages — areas where our established relationship banking model positions us to win and create new fans.”

Shares lifted 1.2% to 85.5p in late morning trading.

The bank also reported that the Financial Conduct Authority has completed its probe into its “historic financial crime systems and controls,” resulting in a £16m fine announced today.

In July, NatWest agreed to buy a £2.5bn portfolio of prime UK residential mortgages from Metro.

The deal, for up to £2.4bn in cash, will see around 10,000 customer accounts transferred to NatWest from Metro, although the accounts will continue to be serviced by the smaller bank.