Metro Bank Holdings PLC (LSE:MTRO) shares fell 6% as investors used better-than-expected results as a cue to book profits on an investment that has rallied 54% rally over the past six months.
The bank returned to the black in the second half of 2024, reporting an underlying pre-tax surplus of £12.8 million, compared with a £26.8 million loss in the first half.
For the full year, however, Metro Bank posted a £212 million pre-tax loss, attributed to the sale of £2.5 billion in residential mortgages to NatWest and costs linked to its restructuring.
Chief executive Daniel Frumkin said 2024 had been a “transformational year,” with the bank shifting focus from retail banking to specialist business and SME lending.
Despite the annual loss, Metro Bank said it ended the year ahead of expectations and remained confident in its strategy. Investors, however, took the opportunity to lock in gains after the recent rally.
In late morning trade, the stock was changing hands for 91.92p, down 5.88p.