Funds News

Metro Bank shares tumble after weak Q1 profits, deposit outflows

LONDON, May 2 (Reuters) - Shares in Britain’s Metro Bank fell by a fifth on Thursday morning, a day after it said its first quarter profits had halved and some depositors had withdrawn funds following a major accounting error disclosed in January.

Bank analysts downgraded their price targets for the upstart lender and warned of more tough times to come, as it battles to complete a 350 million pound capital raise in the second quarter against a difficult market backdrop.

Metro’s problems began in January when it said it had misclassified the risk weighting on a large book of loans, triggering regulatory probes and pressuring it to raise funds. (Reporting By Lawrence White, editing by Sinead Cruise)