 | |
| Formerly | Metro Bank Limited (2007–2009)[1] |
|---|---|
| Company type | Public limited company |
| LSE: MTRO | |
| Industry | |
| Founded | 29 July 2010; 15 years ago (2010-07-29) |
| Founders |
|
| Headquarters | London, United Kingdom |
Number of locations | 76 |
Key people |
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| Products | |
| Revenue |  £405.3 million (2024)[3] |
| £(212.1) million (2024)[3] | |
 £42.5 million (2024)[3] | |
| Total assets | £17,582.0 million (2024)[3] |
| Total equity | £1,183.0 million (2024)[3] |
| Owner | Jaime Gilinski Bacal (53%) |
| Website | metrobankonline |
Metro Bank PLC is aretail and commercial bank operating in the United Kingdom, founded by Anthony Thomson andVernon Hill in 2010.[2] At its launch it was the first newhigh street bank to launch in the United Kingdom in over 150 years.[4] It is listed on theLondon Stock Exchange and is a constituent of theFTSE 250 Index.
After a period of rapid growth, Metro Bank hit difficulties in early 2019 when it announced it had insufficient capital to meet regulatory requirements, following the discovery of an error in the way it categorised its commercial loans forcapital adequacy purposes. As a result, it had to raise an additional £350m of capital. Concerns over the announcement and the bank's ability to raise the capital resulted in the bank's share price falling by 75% in less than four months, and large depositors withdrawing cash, because of "adverse sentiment".
Metro Bank was founded by Anthony Thomson andVernon Hill[2] and granted its licence by theFinancial Services Authority on 5 March 2010, the first high-street bank to be granted such a licence for over 150 years.[4] It planned to open between 200 and 250 branches inGreater London within ten years of starting up.[5] Its first branch opened on 29 July 2010 inHolborn, central London.[6]
In 2012, the bank raised an additional $200 million in funding from investors includingFidelity,Steven A. Cohen of hedge fundSAC Capital Advisors, and New York real estate investorsthe LeFraks andDavid and Simon Reubens.[7] In the same year,Forbes magazine reported that Metro's flagship Holborn branch had "...garnered $200 million in deposits, four times the total at the average mature American branch".[7]
On 2 May 2013 theDaily Telegraph reported that, following a loss of £8.8 million in the first quarter of 2013, Metro Bank's pre-tax losses had exceeded £100 million in less than three years since its launch, but the bank stated that these were planned for,[8] and were "a result of its growth initiatives".[9] In an interview with theFinancial Times, Hill said the bank was "...in line with the business plan to rapidly grow this company". He added: "Our primary goal is to expand the business ... and profit certainly will come".[10]
Metro Bank acquired SME Finance in August 2013, and rebranded the business as Metro Bank SME Finance in May 2014.[11]
In January 2019, Metro Bank admitted classifying a portfolio of commercial loans for capital purposes incorrectly, thereby failing to hold sufficient capital to meet regulatory requirements;[12][13] the error applied to around 10% of its loan book.[12] The miscalculation was identified through a review by thePrudential Regulation Authority (PRA) but Metro Bank erroneously gave the impression that the bank had identified the incorrect classification itself.[13] To correct the error in the capital classification, Metro Bank announced a £350m share issue and said it would reduce its growth plans. It was also reported that the PRA and theFinancial Conduct Authority were to investigate the circumstances of the error.[13] In December 2021, the bank was fined £5.38m by the PRA after their investigation, saying that it had "failed to meet the standards of governance and controls expected of it" with regards to the risk weighting and classification of commercial loans.[14]
As a result of the admission and the share issue announcement, Metro Bank's share price fell sharply, losing 40% of its value in the month after the announcement[15] and 75% in less than four months.[16] By March 2019, theBBC reported that Metro Bank shares were the second mostshorted shares on the UK stock market.[17] Additionally, large depositors began withdrawing funds: Metro Bank admitted that there had been a 4% drop in its deposits in the first quarter of 2019 because of "adverse sentiment".[18]
It was announced in August 2020 that Metro Bank had agreed to acquire Retail Money Market Ltd, a London-based provider of peer-to-peer loans trading asRateSetter. The price would be between £2.5 million and £12 million, depending on performance over the next three years. The purchase was subject to regulatory approval and the agreement of Retail Money Market Ltd shareholders, and was expected to complete in the fourth quarter of 2020. Metro Bank would continue the RateSetter brand and its operations, but new unsecured personal lending would be funded by the bank's deposits, not through peer-to-peer.[19] In February 2021, Metro Bank bought RateSetter's entire portfolio of loans, valued at £384m.[20]
In February 2021, Metro Bank completed the £3.04 billion sale of a residential mortgage portfolio toNatWest. The deal was agreed upon in December 2020.[21][22]
In November 2021, Metro Bank entered talks with theCarlyle Group concerning a possible takeover bid.[23]
On 6–8 October 2022, Metro Bank's mobile banking app failed, resulting in its customers being unable to manage their accounts remotely.[24]
In October 2023, it was revealed thatJPMorgan Chase had considered a bid for Metro Bank before opting not to proceed due to the capital required by the bank.[25] Metro was also claimed to have rejected an offer from fellow challenger bankShawbrook.[26]
On 8 October 2023, Metro Bank secured a £325m capital raise alongside £600m of debt refinancing withJaime Gilinski Bacal, the second richest person in Colombia, becoming the controlling shareholder with around a 53% stake in the business.[27][28]
In November 2024, Metro Bank was fined £16.7 million by the Financial Conduct Authority for failing to ensure an automated system was correctly checking customer transactions for potential money laundering until four years after it was installed.[29]
Metro Bank provides banking services to personal and business customers. It is authorised by thePrudential Regulation Authority and regulated by both theFinancial Conduct Authority and the Prudential Regulation Authority.[30]
Hill raised £250m from investors at the start and said it would take years to make a profit.
Metro Bank PLC. Registered in England and Wales. Company number: 6419578. Registered office: One Southampton Row, London, WC1B 5HA. We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Most relevant deposits are protected by the Financial Services Compensation Scheme.
Media related toMetro Bank at Wikimedia Commons