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 loss in its third quarter, reflecting a challenging nine months for the 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.
You can go long or short Metro Bank with IG using derivatives such as CFDs and spread bets
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.
Looking to trade Metro Bank and other UK bank stocks? Open a live or demo account with IG
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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
