Receive free Metro Bank updates
we will send you myFT Daily Digest Email summary of latest news metropolitan bank There is news every morning.
Shares in Metro Bank plunged 27% on Thursday morning after the Financial Times reported that it was in talks to raise 600 million pounds from investors.
The British challenger bank is in talks to raise 250 million pounds in equity financing and 350 million pounds in debt to shore up its balance sheet, according to people familiar with the matter.
The bank’s shares have fallen sharply in recent weeks, falling to 37.05p at the open, giving it a market capitalization of £62m.
Ratings agency Fitch put Metro on negative watch on Wednesday, citing increased risks to its business model, capital position and financing.
“As previously stated, Metro Bank continues to consider how best to optimize its capital resources to enable it to leverage its established deposit and asset origination platform,” Metro said on Wednesday.
Metro was founded in 2010 as the first new high street bank in more than a century but was rocked by a misreporting scandal in 2019, which led to the resignation of its chairman and chief executive. Last year, the Financial Conduct Authority fined the bank over the incident and reprimanded two former senior executives.
Metro was the most high-profile of a wave of new lenders seeking to challenge Britain’s established banks but has been plagued by problems in recent years. The bank was co-founded by American Vernon Hill, who promised to revolutionize British banking by improving customer service and extending branch opening hours.
Svlook
