Metro Bank shares extended their losses on Wednesday, shedding 22 per cent and leaving the UK high street bank down by more than a third over the past two days.
A report the company was planning a rights issue sent the stock down more than 15 per cent on Tuesday, prompting it to rush out an announcement confirming the capital raise after the market closed.
In the statement Metro also disclosed it was facing investigations from both the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority over the bank’s misclassification of large numbers of commercial loans.
Analysts at Jefferies also highlighted disappointing fourth-quarter results from Metro, with operating costs climbing at their fastest pace in more than three years.
Investec analysts meanwhile noted a delay to Metro Bank’s plans to apply for permission to use internal models to calculate capital requirements. The bank had previously expected to move to internal models by the second half of 2019, now it does not expect to make the transition until at least 2021.
Full story here