Metropolitan Bank Reports Significant Decline in Deposits and Cash Flow


Metropolitan Bank witnessed a notable decrease in deposits and free cash flow during the second quarter, primarily due to the exit of the crypto market. As a result, the bank’s shares experienced a decline, continuing a downward trend since the beginning of the year.

Decline in Deposits

Total deposits as of June 30 stood at $5.3 billion, reflecting a 14% decrease compared to the previous year. This decline can be attributed to an outflow of deposits amounting to $889.8 million, directly tied to the decrease in crypto-related deposits.

Drastic Reduction in Cash and Cash Equivalents

The total value of cash and cash equivalents plummeted by $1.1 billion, leaving it at $201.8 million. This depletion can be attributed to the aforementioned outflow of deposits, further emphasizing the impact of the decreasing crypto market on Metropolitan Bank’s financial health.

Negative Impact on Financial Performance

Metropolitan Bank also experienced a decline in net profit, with figures dropping to $15.6 million, or $1.37 per share, in comparison to the previous year’s $23.2 million, or $2.07 per share. Additionally, their total revenue saw a slight decrease of 1.1%, amounting to $61.6 million.

These developments have raised concerns and impacted the bank’s stock performance, with shares dropping by 8.3% to $42.30 as of 10:13 a.m. ET.

While Metropolitan Bank faces these challenges, it will undoubtedly strive to navigate through this period of market instability and work towards restoring stability and growth in the future.

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