Metro Bank has returned to profit in September by cost-controlling as the lender sets aside £10m in case of losses on loans
The bank expects its net interest margin to continue to increase through 2023 as interest rates climb.
“A long overdue return to profit at Metro Bank comes after shareholders have endured a world of pain for years,” said AJ Bell’s Russ Mould.
“The company’s branch-led model, focus on customer service and little quirks like free water and biscuits for dogs helped it make a big noise when it first joined the UK stock market six-and-a-half years ago. Ultimately it couldn’t back this up when it came to the fundamentals of earnings and cash flow. It still needs to convince the market it is now on a sustainable path.”
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