Metro Bank Holdings PLC (LSE:MTRO) has sought to assuage market fears surrounding the challenger bank’s deposits through the publication of a third-quarter trading update on Tuesday.
A mini crisis engulfed the lender in October following news of an emergency £600 million refinancing package to fortify its rocky balance sheet.
Since then, Metro Bank has successfully executed this debt restructuring, as well as raising an additional £325 million in capital through new equity and MREL issuance.
Though Metro Bank suffered a surge in deposit outflows in October, “daily flows have returned to more normal ranges”, the bank today stated.
“The third quarter delivered continued momentum in personal and business current account growth and customer acquisition as well as a modest statutory profit after tax,” read the trading update.
However, the trading update did not disclose post-quarterly figures, leaving stakeholders in the dark for now.
As of 30 September, total assets on Metro Bank’s books were 4% lower year on year at £21.6 billion, with a loan-to-deposit ratio of 80% marking a two percentage point increase.
The market was underwhelmed by today’s update, sending shares 3% lower, thus extending the year-to-date share price rout to -67%.