In trending news on UK stocks, Metro Bank PLC (GB:MTRO) reported that its underlying loss reduced to £16.9 million in 2023, compared to a loss of £50.6 million a year ago. The bank also reported a statutory profit of £30.5 million after a gap of four years. Additionally, the bank stated that it has intensified its efforts to reduce costs, aiming to achieve additional savings of £30 million in 2024. MTRO shares declined by nearly 6% at the time of writing, reflecting continued concerns about the bank’s financial position.
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In the last 12 months, the stock has lost around 70% of its value, primarily due to financing challenges faced by the bank. The bank was rescued in a deal with Spaldy Investments, owned by Colombian billionaire Jaime Gilinski Bacal.
Metro Bank offers a wide range of banking and financial services in the UK, primarily targeting retail customers and small to medium-sized businesses.
Targets More Cost Efficiency
Under its restructuring plan, Metro Bank remains on schedule to deliver £50 million of annualised cost savings in the first quarter of 2024 and £30 million in additional annualised cost savings by the end of this year. The bank is undertaking measures like layoffs and reducing store hours. Metro Bank is planning further job cuts after reducing its headcount by about 22%.
The bank will transition some branches to operating six days a week, while others will reduce their hours further, moving to a five-day schedule.
What is the Forecast for Metro Bank?
Overall, MTRO stock has received a Moderate Sell consensus rating on TipRanks, based on one Hold and one Sell recommendation from analysts. The Metro Bank share price target is 45p, which implies 36.8% upside from the current level.
