Metro Bank Q3 earnings: what next for the share price?
The challenger bank will release its Q3 results next week with it going through a particularly tough first six months of trading in a 'transitional' year for the high street lender.
When is Metro Bank’s results date?
Metro Bank will unveil its Q3 earnings on October 23.
Metro Bank’s results preview: what does the City expect?
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.
The bank is likely looking to put the first half of 2019 far behind it and instead focus on delivering costs efficiencies and continued growth in capital-light fee income.
The bank is also busily expanding its presence in the North of England in the hopes of empowering growth for SMEs in cities like Manchester, Liverpool and Birmingham. Metro Bank plans to open around 10 new branches in 2019.
A 'transitional' year for Metro Bank
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.
The stock has lost more than 85% of its value since the beginning of January, with the Metro Bank’s share price closing at 204p on Tuesday’s session, down from the £17 levels it saw at the start of the year.
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Metro Bank’s total deposits sit at £13.7 billion, down 13% from 31 December 2018, driven by a limited number of commercial customers withdrawing deposits during intense speculation in February and May.
Despite the pressure the bank finds itself under, its management contends that 2019 is a ‘year of transition’, with the lender focused on upgrading its cost savings guidance to the upper end of its original range and rebalancing its lending mix.
This year also saw the resignation of the bank’s controversial Chairman and Co-Founder Vernon Hill, who will leave his post at the end of the year.
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