Metro Bank shares drop 7% despite debut profits

Metro Bank shareholders are not convinced, despite the challenger bank’s debut full-year profits.

Shares have dropped by more than 7 per cent since the start-up* said it was on track to hire hundreds more people while it takes the fight to the big high-street banks.

The decline is rather jarring. Jefferies, for one, argues that the bank is demonstrating the “strength of its franchise” and that shares have scope to climb to £47, from £33.42 now.

By contrast, Lloyds Bank shares are up 1.8 per cent, despite the stalwart missing profit forecasts due to (yet another) provision for potential PPI claims. Analysts were encouraged by Lloyds’ ambitious plans to increase its profitability over the next three years.

(*It was founded in 2010, but was the first high-street bank to launch for 150 years at the time.)

The Financial Times Limited 2018. All rights reserved.


READ ---  7 On Your Side: Hurricane Irma causing Carnival cruise problems