Metro Bank shares tank over error
Shares in Metro Bank tanked on Thursday after the lender revealed the impact of a major accounting error and subsequent investor cash call in what it described as a "challenging" first quarter.
The high-street lender's shares plunged over 15% in morning trade after it unveiled a dismal set of first-quarter figures late on Wednesday, before recovering to 11% lower at 688p. In January, Metro flagged that it had miscalculated the risk weighting of commercial loans secured on property and certain specialist buy-to-let loans. It later unveiled a £350m cash call to make up for the shortfall on its balance sheet.
The share price collapse comes off the back of fresh figures showing quarter-on-quarter deposit growth was affected by some major customers withdrawing during the fallout from the debacle, resulting in a 3.6% reduction. Total deposits stabilised in March and returned to growth in April.