CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Société Générale downgrades Metro Bank ahead of Q1 results

The French investment bank opted to downgrade the UK challenger bank ahead of its first quarter results next week, while short sellers raise bets against the lender.

Analysts from Société Générale have downgraded Metro Bank from a ‘buy’ rating to ‘hold’ ahead of its first quarter (Q1) earnings next week.

The French investment bank also lowered its price target for the stock to 100p a share, which implies that the challenger bank is unlikely to see significant gains in the near-term.

Metro Bank is trading at 92p a share as of 13:45 (GMT) on Wednesday.

Société Générale’s uninspired outlook for the UK challenger is no surprise after the lender was order by the UK Competition and Markets Authority (CMA) ordered it to repay £11.4 million to customer for overdraft charges earlier this week.

Around 130,000 Metro Bank customers will receive average payments of approximately £86 after the lender failed to adequately warn its customers about unarranged overdraft charges.

‘We are very sorry that we didn’t include all the information we should have done on our overdraft text alerts, and that on certain occasions some customers did not receive these alerts before 10am as they should have done,’ David Thomasson, Metro Bank chief commercial officer, said.

‘This isn't the level of service that we pride ourselves on providing and we are now contacting any customers who have been impacted to put things right for them as quickly as possible,’ he added.

The fine is a blow for Metro Bank, with the lender eager to cut costs after a disappointing performance in 2019 due to an accounting error that caused it to play down the risk of a significant proportion of its mortgage loans which caused it to exaggerate the strength of its balance sheet.

The accounting error prompted regulators to launch an investigation into what went wrong, while the bank’s share price collapse with the stock showing no signs of recovering any time soon.

How to trade stocks with IG

Looking to trade Metro Bank and other stocks? Open a live or demo account with IG and buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:

  • Create an IG trading account or log in to your existing account

  • Enter ‘Metro Bank’ in the search bar and select it

  • Choose your position size

  • Click on ‘buy’ or ‘sell’ in the deal ticket

  • Confirm the trade

Ready to start trading shares? Open a live account or practise on a demo.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.