Metro Bank share price: where now after Q3 results disappoint?
The challenger bank recorded a £2.2 million loss in its third quarter, but its share price has rallied in the wake of its results despite its disappointing earnings due to an influx of new customers.
Metro Bank recorded a £2.2 million in its third quarter, reflecting a challenging nine months for lender that saw an accounting error at the beginning of the year rock investor confidence and send its share price tumbling more than 85%.
However, despite the bank wrestling with a myriad of headwinds, the bank has made progress in reducing costs, strengthening its balance sheet and bringing in more customers, helping to send its shares higher in the wake of its Q3 results.
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Metro Bank sees influx of new customers
In its third quarter, Metro Bank opened 106,000 new accounts – bringing its total to 1.9 million – helping total deposits to rise from £528 million to £14.2 billion over in the three months to September 30.
‘Despite considerable headwinds, we have made strong progress in reducing costs, increasing fee income and further strengthening our capital and liquidity position whilst also retaining our top position for overall quality of service for personal current account holders,’ Metro Bank CEO Craig Donaldson said.
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A challenging year for Metro Bank
It has been a challenging year for Metro Bank, with the lender facing intense speculation over the health of its balance sheet earlier this year due to a £900 million accounting error.
However, investors’ concerns likely diminished somewhat after the bank successfully raised £375 million via a share placing in mid-May.
Metro Bank had originally only planned to raise £350 million from the fundraising but increased the final amount after receiving significant interest from investors.
Fears over Metro Bank’s financial health sparked a wave of deposit outflows earlier this year, prompting its share price to take a major tumble.
However, it appears that the bank has finally found its bottom after hitting an all-time low of 166p in late-September, with the stock rallying more than 20% in the weeks that followed to trade at 205p as of 13:00 GMT on Tuesday.
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