Shares soared as FTSE 250 lender swung to £98m profit

Metro Bank has returned to the black as the firm’s shift towards small business lending delivered a boost in revenue.

The FTSE 250 lender posted a pre-tax profit of just over £98m – a 15-year peak and significant turnaround from losses of £14m the previous year.

The reversal arrived as Metro recorded 67 per cent growth in new corporate, commercial and small and medium-sized enterprise (SME) lending – a sector the bank has targeted as central to its recovery plan.

Shares in the company climbed as much as seven per cent following the announcement to 122.36p. Over the past 12 months, the stock has gained more than 40 per cent.

Turnover at the firm increased 16 per cent to just above £585m as lending in the group’s focus segment expanded 56 per cent year-on-year to £5.2bn, as reported by City AM.

Metro is amongst several banks that have moved into the SME lending market amid a retreat from industry heavyweights, with the sector typically delivering higher margins for lenders as they can command elevated interest rates.

The segment also emphasises relationship-building with businesses compared to lending to large corporations, which can seek the most competitive debt globally.

“We are capturing market share in our target segments and have a deep pipeline of attractive lending opportunities,” said Daniel Frumkin, Metro’s chief executive.

He noted that the bank’s emphasis on the “execution of our strategy and pivot to high margin business” had contributed to a surge in profits whilst reducing expenses.

Operating costs plummeted seven per cent year-on-year to £473m, surpassing previous predictions of a four to five per cent decrease.

The bank has outlined plans for its return on tangible equity – a crucial measure of profitability – to more than double from the current level of 6.4 per cent over the forthcoming 6 months and nearly triple over 18 months.

The lender is also anticipated to greatly benefit from the alterations to the MREL regime announced in Rachel Reeves’ regulatory reforms at Mansion House last year.

Established in the aftermath of the 2008 financial crisis, minimum requirement for own funds and eligible liabilities (MREL) rules impose strict tailored requirements for banks with assets between £15-25bn. The Bank of England is poised to raise the threshold following consultation.

Metro has been reclassified as a transfer firm under the system, a move that liberates the bank’s balance sheet with reduced costs. The company stated it unlocks “significant capacity for growth”.

GameStop Corp. (NYSE: GME) shares closed modestly lower Tuesday, reflecting cautious investor sentiment as the video game retailer navigates a strategic pivot under CEO Ryan Cohen while facing persistent challenges in its core brick-and-mortar business.

GME ended at $23.82, down $0.38 or 1.57% from Monday’s close of $24.20. The stock opened at $23.78, traded in a narrow range between $23.45 and $24.17, and saw volume of about 4.1 million shares — near the recent average but below the frenzied levels of past meme-stock surges. After-hours trading showed a slight dip to around $23.74-$23.76.

The decline came amid broader market volatility tied to geopolitical tensions in the Middle East, though GME’s moves appeared more company-specific. The retailer has been in the spotlight for Cohen’s aggressive transformation efforts, including a massive performance-based compensation package approved in January 2026 and speculation about a blockbuster acquisition using its substantial cash reserves.

Cohen, who became chairman in 2021 and CEO shortly after, received a long-term incentive award potentially worth up to $35 billion, contingent on elevating GameStop’s market capitalization to $100 billion and achieving $10 billion in cumulative performance EBITDA. The package is entirely “at-risk,” with no base salary, aligning Cohen’s interests tightly with shareholders. He has personally invested heavily, including back-to-back purchases of 500,000 shares each in January at around $21 per share, boosting his stake to about 9.2% and signaling confidence in the turnaround.

In a January interview with The Wall Street Journal, Cohen outlined ambitions to grow GameStop from an $11 billion company into one valued over $100 billion through a “very big” acquisition of a publicly traded firm, likely in consumer or retail sectors. Speculation has centered on targets like eBay, though no deal has materialized. Analysts note the move could diversify beyond declining physical game sales, but risks remain high — a misstep could erode the cash hoard built from meme-stock rallies and share offerings.

GameStop ended fiscal 2025 with roughly $8.8 billion in cash and equivalents, bolstered by strategic capital raises in prior years. The balance sheet strength provides flexibility, but revenue trends weigh on sentiment. The company has accelerated store closures in 2026, with nearly 500 locations marked for shutdown across dozens of states as digital downloads and streaming erode demand for physical media. Circana projects modest U.S. video game spending growth of 3% to $62.8 billion in 2026, but traditional retail faces headwinds.

Despite challenges, Cohen’s vision draws comparisons to activist investors like Warren Buffett, though some critics argue the meme-stock label and volatility disconnect price from fundamentals. Michael Burry, the “Big Short” investor, disclosed a long-term position in January 2026, sparking a brief rally, but momentum faded.

Analyst coverage remains sparse and mixed. Consensus leans toward “hold” or “sell,” with average 12-month targets around $13.50 to $26, implying limited near-term upside from current levels. Some forecasts, like Long Forecast’s mechanical projection, see potential for $31 by year-end 2026 if trends hold, while others warn of downside to the low $20s amid execution risks.

The stock’s 52-week range spans $19.93 to $35.81, with the high hit in May 2025 during a brief resurgence. Year-to-date in 2026, shares are roughly flat to modestly positive after early volatility, trading well below 2021 peaks above $80 (pre-split adjusted). Market capitalization hovers near $10.67 billion, with about 448 million shares outstanding.

GameStop’s next earnings report is expected around late March 2026 for the fiscal fourth quarter. Investors will watch for updates on acquisition talks, cash deployment, and progress toward Cohen’s ambitious targets. For now, the stock remains a high-risk, high-reward play driven by leadership vision rather than steady retail performance.

As Cohen pursues his consumer megadeal strategy, GameStop continues to straddle its meme-stock past and a potential new chapter as a diversified holding company. Whether the gamble pays off will depend on execution in an evolving gaming landscape.

Song Ping, a veteran Chinese Communist revolutionary whose nine-decade career bridged the founding of the People’s Republic and its modern era, died Wednesday at age 108, state media reported.

Song passed away at 3:36 p.m. in Beijing due to illness despite medical treatment, Xinhua News Agency announced. Described in the official obituary as a “long-tested, loyal communist fighter,” he was one of the last living links to the party’s earliest generations, having joined in 1937 and served under leaders from Mao Zedong to Jiang Zemin.

Born Song Yanping on April 24, 1917, in Ju County, Shandong Province, Song grew up amid warlord rule and Japanese invasion. He participated in revolutionary activities from the 1930s, graduating from Tsinghua University’s chemistry department before fully committing to the Communist cause. During the Second United Front against Japan (1938-1947), he served as political secretary to Zhou Enlai, one of the “five secretaries” of the Central Committee, gaining early exposure to top leadership.

After 1949, Song held key provincial and central roles. He became First Party Secretary of Gansu Province from 1977 to 1981, where he championed economic reforms and talent development. Notably, he promoted Hu Jintao, then a young official in Gansu’s construction commission, launching the future general secretary’s ascent. Chinese media often dubbed Song “the greatest talent scout in Chinese politics” for nurturing Hu and others.

In the reform era under Deng Xiaoping, Song headed the State Planning Commission (1983-1987) and served as State Councilor. He chaired the Central Organization Department from 1983 to 1987, overseeing senior cadre appointments, promotions, and evaluations — a position of immense influence over the party’s personnel system.

The 1989 Tiananmen Square crisis elevated Song to the Politburo Standing Committee on June 24, alongside Jiang Zemin and Li Ruihuan, as the party reshuffled leadership. At 72, he became a core figure in stabilizing the post-crisis order. He retired at the 14th Party Congress in October 1992, ending his formal role but retaining symbolic stature as the oldest living former PSC member.

Song’s longevity made him a living archive of CCP history. He witnessed five generations of leaders: Mao, Deng, Jiang, Hu, and Xi Jinping. Even in retirement, he attended major events, including the 19th National Congress in 2017 at age 100 and the 20th in 2022 at 105, arriving in a wheelchair but actively following proceedings. His presence underscored continuity and reverence for revolutionary elders.

Known for low-key demeanor and emphasis on party discipline, Song avoided public controversy in later years. He celebrated his 100th birthday in 2017 and remained one of the world’s oldest living politicians. His wife, Chen Shunyao, a fellow revolutionary, died in 2019. They had at least one son, Song Yichang.

Song’s death comes amid China’s ongoing emphasis on party history and revolutionary traditions under Xi. Official tributes highlighted his loyalty, contributions to cadre building, and role in economic planning during pivotal transitions.

As the sole surviving member of the 13th PSC from 1989-1992, Song’s passing closes a chapter on the post-Tiananmen leadership that guided China through rapid modernization. His career exemplified the party’s evolution from revolutionary struggle to governance, leaving a legacy tied to talent cultivation and institutional stability.

Funeral arrangements were not immediately detailed, but state protocol typically includes high-level memorials for such figures. Song is survived by family and a vast network of protégés across generations of officials.

UK financial watchdog considering over 1,000 responses to proposals

The UK’s financial regulator is aiming to “streamline” its long-awaited motor finance compensation scheme following extensive industry backlash.

The Financial Conduct Authority (FCA) issued a fresh update to markets on Wednesday, stating it was reviewing over 1,000 responses to its proposals for the sector-wide redress scheme.

It added that “if” it were to proceed with a scheme, the regulator was “likely to make several changes”.

In its Wednesday update, the FCA stated it would streamline the process for consumers and firms by eliminating the opt-out options and replacing them with a three-month deadline for lenders to inform consumers what they are owed and how much.

Consumers receiving an offer would also be able to accept it immediately, rather than waiting for the final determination, as reported by City AM.

Firms would also no longer be required to write to customers via recorded delivery, which the regulator said would open new communication channels to best meet consumers’ needs.

The FCA stated: “If we do go ahead [with the scheme], we expect to publish final rules in late March.”

Earlier this year, Britain’s leading banks were believed to have been given some relief after the Supreme Court upheld two out of three appeals from lenders in the landmark car finance scandal.

But the latter half of the year delivered a succession of dramatic developments in the saga, with the FCA revealing proposals for a controversial redress scheme that prompted banks to substantially increase their provisions for compensation.

One of the principal areas of criticism regarding the FCA’s scheme centres on the determination of “unfair” – the benchmark the Supreme Court upheld in the single successful claimant’s case.

The highest Court ruled in favour of one of three claimants after determining their excessive commission of 55 per cent was “unfair”. However, the FCA has stated the threshold for its redress – where 14.2m agreements are estimated to be eligible – will be 35 per cent.

The scheme in its current form presents lenders with a bill of approximately £11bn – still a substantial sum but significantly below previous projections of £44bn once feared by the City. Roughly 14.2m agreements will qualify for the scheme, extending back to 2007 – a timeframe which has encountered fierce resistance from the industry.

The regulator was compelled to extend the deadline for submitting feedback for the motor finance redress scheme last year as opposition from both consumer and lending camps intensified.

Lloyds Banking Group – which owns Britain’s largest car finance provider Black Horse – was obliged to raise provisions to £2bn from £1.2bn after particulars of the scheme emerged in October. FTSE 250 lender Close Brothers nearly doubled its reserves to £300m and Barclays almost quadrupled its provisions to £325m.

Santander UK abandoned its third-quarter results in October, referencing uncertainty within the motor finance sector, as bank chief Mike Regnier urged the government to consider intervening to help mediate. He warned if the government does not intervene “the unintended consequences for the car finance market, the supply of credit and the resulting negative impact on the automotive industry and its supply chain could significantly impact jobs, growth and the broader UK economy.”

There has also been equivalent opposition on the consumer side, with the All-Party Parliamentary Group (APPG) on Fair Banking condemning the City watchdog for a “£4.4bn gap” in the proposed scheme. The group accused the regulator of being “influenced by the profit margins of the lenders”.