Metro Bank’s update to the market on Wednesday has led to speculation it will need to raise capital once more. It revealed slowing loan and deposit growth, weaker than expected profits, and a greater than expected rise in risk-weighted assets chewing up its capital ratio. The update came at a time when UK banks are pessimistic about raising capital.
The set of disappointing results has caused the price of its bond and equity to drop dramatically. Speculation is revolving around a capital raise to boost its buffers once more.
“Overall, this is a very negative statement from Metro Bank, in our view, with growth slowdowns — which