Home Business NewsBusinessBanking Metro Bank shares plunge 15 per cent

Metro Bank shares plunge 15 per cent

by LLB Reporter
2nd May 19 11:35 am

Metro Bank’s shares tanked on Thursday after the bank revealed the true impact over the major accounting error, they described it as a “challenging” first quarter.

Shares plunged 15% in early morning trade as the bank revealed a dismal set of figures for the first quarter late on Wednesday.

In January Metro Bank said they had miscalculated the risk of commercial loans that are secured on property with certain specialist buy-to-ley loans.

The bank then made a cash call of £350m to their investors to make up the shortfall.

Michael Hewson, analyst at CMC Markets said, “If management were hoping to avoid greater scrutiny by giving analysts limited time to peruse the numbers then this morning’s share price action suggests that while they may have avoided some difficult questions, the numbers more or less speak for themselves.

“They also raise important questions over not only the quality of management’s oversight policies but also the auditors themselves.”

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