Metro Bank plc is a retail and commercial bank operating in the United Kingdom, founded by Anthony Thomson and Vernon Hill in 2010.
After a period of rapid growth, Metro Bank hit difficulties in early 2019 wh it announced it had insufficit capital to meet regulatory requiremts, following the discovery of an error in the way it categorised its commercial loans for capital adequacy purposes. As a result, it had to raise an additional £350m of capital. Concerns over the announcemt 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 stimt.
Metro Bank was granted its licce by the Financial Services Authority on 5 March 2010, the first high-street bank to be granted such a licce for over 150 years.
Metro Bank Harrow
In 2012, the bank raised an additional $200 million in funding from investors including Fidelity, Stev A. Coh of hedge fund SAC Capital Advisors, and New York real estate investors the LeFraks and David and Simon Reubs.
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.
On 2 May 2013 the Daily 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,
Metro Bank, The First New High Street Bank In 150 Years On The Uk High Street And One Of A New Generation Of Challenger Banks, Basingstoke, Uk Stock Photo
In an interview with the Financial 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.
Metro Bank increased its account holders by 50% in the first half of 2013 for a total of 200, 000 customer accounts, including 15, 000 business accounts. It was aiming to have 200 UK branches op by 2020.
In January 2019, Metro Bank admitted classifying a portfolio of commercial loans for capital purposes incorrectly, thereby failing to hold sufficit capital to meet regulatory requiremts;
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The miscalculation was idtified through a review by the Prudtial Regulation Authority (PRA) but Metro Bank erroneously gave the impression that the bank had idtified the incorrect classification itself.
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 the Financial Conduct Authority were to investigate the circumstances of the error.
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.
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As a result of the admission and the share issue announcemt, Metro Bank's share price fell sharply, losing 40% of its value in the month after the announcemt
Additionally, large depositors began withdrawing funds: Metro Bank admitted that there had be a 4% drop in its deposits in the first quarter of 2019 because of adverse stimt.
Metro Bank provides banking services to personal and business customers. It is authorised by the Prudtial Regulation Authority and regulated by both the Financial Conduct Authority and the Prudtial Regulation Authority.
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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 as RateSetter. The price would be betwe £2.5 million and £12 million, depding on performance over the next three years. The purchase was subject to regulatory approval and the agreemt 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 lding would be funded by the bank's deposits, not through peer-to-peer.
In February 2021, Metro Bank completed the £3.04 billion sale of a residtial mortgage portfolio to NatWest. The deal was agreed upon in December 2020.
Founder Vernon Hill received the Institute of Economic Affairs' Free terprise Award in April 2013. The organisation cited him as a remarkable trepreur who has idtified a clear opportunity and tered the UK banking sce at a time wh the sector has be under constant fire.People working in Metro Bank’s high street banks are being offered a compressed four-day week, becoming the latest employers to explore alternative working patterns.
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Metro Bank offers customers extended opening hours in the evenings and at weekends and, to manage these, those working in its stores have worked a traditional five-day shift pattern. But now all store employees will have the choice between either the existing five-day or the new four-day working week. Regardless of the shift pattern chosen, all store colleagues will work the same hours depending on whether they are full or part time.
Carol Frost, Chief People Officer of Metro Bank, said: “We are famous for our culture and the focus we bring on recruiting the right people for our business and we believe this new shift pattern will be very appealing for those who need more flexibility in their working life. We trialled the new shift pattern in nine stores last year and it works really well for colleagues who need more flexibility in their working week. The new shift pattern is totally optional and nearly two thirds of our existing store colleagues will move to this new four-day week from February.”
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