Metro Bank, Serco and Invidior

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“Early gains in the FTSE 100 were pared back in afternoon trading as one of the UK’s leading challenger banks delivered strong results,” says AJ Bell Investment Director Russ Mould.

“Shares in Metro Bank rose by over 1% after it published fourth quarter figures that beat market expectations in certain areas. Customers deposited 9% more money with the lender in the fourth quarter of 2016 versus the previous three month period, while lending increased 13% quarter-on-quarter to £5.9bn. Revenue was also up 8%, converting into a pre-tax profit of £1.5m. Market watchers will be keen to see evidence of continuing growth in both deposits and loans this year.

“FTSE 250 listed outsourcing firm Serco took a hammering as it posted a 14% fall in underlying profit for 2016. Despite claims from chief executive Rupert Soames that the firm’s five-year plan remains ‘on track’ and trading was ‘better than expected’ at the start of the year, unimpressed investors bailed, sending its share price plummeting by 18%.

“Pharmaceuticals business Indivior also took a pounding, seeing its share price tumble over 7% after a $220m charge for investigative and antitrust litigation hit the bottom line. The firm says it remains in discussions with the US Department of Justice over the issue, but with profits down from $346m to $149m, many investors have clearly seen enough.”

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