Metro Bank shares tumble on missed expectations

Metro Bank shares tumble on missed expectations

metro bank

Shares in Metro Bank fell on Wednesday morning after underlying profits in 2018 missed analyst expectations.

The lender reported a 138% rise in profits to £50 million in the year to 31 December 2018, however, profits were £9 million lower than expectations.

Following the news, shares in Metro Bank tumbled over 28% to 1,581p – the lowest since the company was listed in 2016.

The chief executive Craig Donaldson said: “2018 was another strong year of growth for Metro Bank as we continued to invest in both new stores and digital capabilities to win customers, deposits, assets and to create fans.”

“Metro Bank remains well positioned to support our growth strategy as we navigate an uncertain period for the UK,” he added.

In the fourth quarter of 2018, the lender saw 100,000 new customers and opened six new branches. 

The group said that in the past year, loans grew 48% to £14.2 billion. Assets grew 32% to £21.7 billion and deposits in the bank increased 34% to £15.7 billion.

Shares in Metro Bank (LON: MTRO) are currently trading down 30.59% at 1.528,50 (1135GMT).