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Metro Bank has secured a multi-million-pound rescue deal to shore up its balance sheet following days of intense speculation last week.\u00a0<\/p>\n
In a statement released on Sunday, the challenger bank said it had secured \u00a3325million capital raise, comprising \u00a3150million of new equity and \u00a3175million of new minimum requirement for own funds and eligible liabilities, known as MREL, issuance. It also managed to refinance \u00a3600million of debt.<\/p>\n
Spaldy Investments Limited is leading the equity raise by contributing \u00a3102million, making it the controlling shareholder of Metro Bank owning around 53 percent.<\/p>\n
It also listed a \u00a330million cost reduction plan as part of the deal, but the details of this are yet to be shared.\u00a0<\/p>\n
Metro’s chief executive, Daniel Frumkin, said the deal marked “a new chapter” for the bank, facilitating the delivery of \u201ccontinued profitable growth\u201d over the next few years.\u00a0\u00a0<\/p>\n
READ MORE: <\/strong> Moneybox earns ‘excellent’ rating with market-leading 5% interest rate on ISA[LATEST] <\/strong><\/p>\n Mr Frumkin continued: \u201cMetro Bank made a statutory profit after tax in Q3 2023 and continues to demonstrate ongoing momentum as we strive towards our ambition to be the UK\u2019s number one community bank.\u00a0<\/p>\n \u201cOur strong franchise is underpinned by our loyal customer base and engaged colleagues and we will continue to develop the Metro Bank offer to provide the digital and physical banking services our customers expect. We thank our shareholders and noteholders for their continuing support of Metro Bank and our customers.\u201d\u00a0<\/p>\n Jaime Gilinski Bacal, founder of Spaldy Investments Limited, said: \u201cI have been an active investor in Metro Bank since 2019. The opportunity to become the Bank\u2019s major shareholder is driven by my belief in the need for physical and digital banking underpinned by a focus on exceptional customer service.<\/p>\n Don’t miss… <\/strong> \u201cI believe that the package announced today enables the Bank to pursue growth and build on the foundational work undertaken over the past three years.\u201d<\/p>\n Commenting on the deal, a spokesperson from the Prudential Regulation Authority said it \u201cwelcomes\u201d the steps taken by Metro Bank to \u201cstrengthen\u201d its capital position.<\/p>\n Metro Bank has maintained that its finances are strong and it continues to meet all regulatory requirements.<\/p>\n The bank is also protected by the Financial Services Compensation Scheme (FSCS). The FSCS was set up by the Government in 2001 and protects deposits of up to \u00a385,000 a person has saved (\u00a3170,000 jointly) per UK-regulated financial institution.<\/p>\n We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info<\/p>\n This means if a UK bank, building society or credit union were to fail, the FSCS would automatically compensate its customers within seven days.\u00a0<\/p>\n It also protects certain qualifying temporary high balances, such as a property purchase, up to \u00a31million for six months from when the amount was first deposited.<\/p>\n While the bank has confirmed it is looking at selling up to \u00a33billion of its residential mortgages\u00a0to other banks, homeowners don’t face any immediate change.\u00a0<\/p>\n It may just mean some customers will have their loans managed by another bank in the future.<\/p>\n![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/23\/590x\/secondary\/METRO-BANK-RESCUE-PLAN-5004032.jpg?r=1696934883174\")
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‘I went to bed with \u00a31 in my savings account – and woke up to find \u00a3122,000′[INSIGHT] <\/strong>
Savings expert shares three ‘super easy’ tips to save \u00a32,250 a year[EXPLAINED] <\/strong>
A quarter of Brits don’t see the point in saving if they have just a few pounds[ANALYSIS] <\/strong><\/p>\nIs my money safe?\u00a0<\/strong><\/h3>\n