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Metro Bank, the high street lender, is drawing up plans to raise hundreds of millions of pounds of new capital in weeks in a bid to strengthen its troubled balance sheet.

Sky News has learnt that Metro Bank – the first new lender to open on Britain’s high streets in over 100 years when it launched in 2010 – is working with advisers to secure several hundred million pounds in new debt and equity.

City sources said on Wednesday evening that the company had hired bankers at Morgan Stanley to work on the capital-raising plans, while Moelis, another investment bank, is also thought to be involved.

Royal Bank of Canada, Metro Bank’s corporate broker, is also involved in the equity-raise.

Metro Bank’s board, which is chaired by Robert Sharpe, a veteran banker, is exploring a range of options to shore up its troubled balance sheet.

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A potential equity-raise of more than £100m is understood to be among them, although analysts and industry executives have cast doubt on its ability to deliver that following a precipitous fall in its share price.

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Metro Bank has 2.7 million customer accounts, making it one of the 10 largest banks in Britain.

It offers current accounts, business accounts, personal loans and insurance products, and employs about 4,000 people, operating from about 75 branches across the country.

Shares in Metro Bank have halved during the last month to leave it with a market capitalisation of less than £100m, having been valued at about £3.5bn at its peak in 2018.

The company’s directors are also understood to be trying to raise roughly £200m of loss-absorbing capital known as MREL.

Metro Bank needs to refinance £350m of existing MREL debt which is due to expire this time next year.

Another alternative being considered would involve the sale of billions of pounds of mortgage assets, a move that would reduce its earnings but also sharply reduce the amount of capital it is forced to hold.

Further options could entail a debt-for-equity swap or an outright sale of the company.

In a statement issued to Sky News, a Metro Bank spokesman said: “As previously stated, Metro Bank continues to consider how best to optimise its capital resources to allow it to take advantage of the deposit and asset origination platform that has been built.”

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Sky’s business presenter Ian King says Treasury plans aim to maintain access to cash for consumers and businesses.

On Wednesday evening, City insiders said that banking regulators and the Treasury were closely monitoring Metro Bank’s capital-raising plans.

While there is no suggestion that it is at risk of imminent collapse, rumours have circulated for years about its finances.

In 2019, customers formed sizeable queues at some of its branches after suggestions circulated on social media that it was in financial distress.

Days later, it unveiled a £350m share placing in a move designed to allay such concerns.

News of Metro Bank’s efforts to secure a new capital injection comes weeks after it was dealt a severe blow by the Prudential Regulation Authority (PRA), which supervises British banks’ capital and solvency.

In mid-September, it announced to the London stock market that the PRA had informed it that it would not gain approval this year for an internal ratings-based model allowing it to hold less capital against its mortgage assets.

Metro Bank has had a chequered history with City regulators, despite its relatively brief existence.

Last December, it was fined £10m by the Financial Conduct Authority for publishing incorrect information to investors, while the PRA slapped it with a £5.4m penalty for similar infringements a year earlier.

The lender was founded in 2009 by Anthony Thompson, a financial services entrepreneur, and Vernon Hill, an American who eventually left in controversial circumstances in 2019.

Metro Bank has been forced to sell assets in the past, announcing a deal in December 2020 to sell a portfolio of owner-occupied residential mortgages to NatWest Group for up to £3.1bn.

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Southport attack victim’s teachers ‘don’t want her to be forgotten’

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Southport attack victim's teachers 'don't want her to be forgotten'

The teacher of one of the Southport stabbing victims has told Sky News they “don’t want her to be forgotten”, 10 months after the knife attack in which she was murdered.

Seven-year-old Elsie Dot Stancombe was killed along with Bebe King, six, and nine-year-old Alice da Silva Aguiar in an attack by Axel Rudakubana at a Taylor Swift-themed dance class last July.

Jennifer Sephton, headteacher of Farnborough Road Infant School, will be skydiving to raise funds for the Elsie’s Story charitable trust, which has been set up in memory of the former pupil.

Alice da Silva Aguiar, Elsie Dot Stancombe and Bebe King were murdered in an attack at a Taylor Swift-themed class.
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(L-R) Alice da Silva Aguiar, Elsie Dot Stancombe and Bebe King were killed in an attack at a Taylor Swift-themed class


“She’d been with us for four years, throughout her education,” Ms Sephton told Sky News, “and we just want everybody to know Elsie’s spirit.”

Describing Elsie as “such a determined young lady,” Ms Sephton said Elsie had “a real zest for life, and a sparkle in her eye all the time.”

She added that Elsie’s Story, which has been set up by Elsie’s family, is about “continuing that legacy.”

Jennifer Sephton
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Jennifer Sephton

In the aftermath of the July 2024 attack, the gates outside Elsie’s school were lined with flowers, balloons, and cards bearing her name.

Since then, memorial benches and a tree have been planted in the school grounds, providing pupils and staff with a place to “remember and reflect”, Ms Sefton says.

“[Elsie’s death] had such an impact on all our community,” the teacher said, “it’s had an impact on her friends, their siblings, our school as a community and our staff.”

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Adrian Antell
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Adrian Antell

‘We want her name to live on’

Ms Sephton will be joined in the skydive by Adrian Antell, headteacher at the adjoining junior school where Elsie had been due to start.

“Elsie was due to come to us last September,” he told Sky News, “but what we’ve learned about her is that she had a wonderful impact in the infant school, and we don’t want her to be forgotten.

“We want her name to have to live on and to be thought of in a positive way.”

Mr Antell said they continue to support Elsie’s classmates, who joined the new school without her.

“There’s no instruction manual for this,” he explained, “every day is different, and every day is one step at a time.

“So all we can do as a school is to think about individual children and support them in the best way we can.”

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Scientists embark on crucial study to save Britain’s bees

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Scientists embark on crucial study to save Britain's bees

Scientists from Kew Gardens are using a new study to track which trees bees prefer to try to stem the decline in our vital pollinators.

Bee populations are falling all over the world due to a mixture of habitat loss, climate change, and the use of pesticides, with a devastating impact on our biodiversity and food production.

But it’s feared that not enough comprehensive, global research is being done to understand the issue or find solutions.

Pollination Research Lead, Dr Janine Griffiths-Lee told Sky News “Nearly 90% of our flowering plants depend on the contribution of pollinators, but in the UK the population of flying insects in the last 20 years has decreased by around 60%. 
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The study is building up heat maps of the most popular trees


 

Now, scientists based at Wakehurst in Sussex (Kew’s “Wild Botanic Garden”) have begun placing advanced bioacoustics sensors in some of their trees, to track which ones the bees are more drawn to.
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Non-invasive monitors track the buzz created by bees’ wing beats

UK becoming a no-fly zone

Researchers based at Wakehurst in Sussex, known as Kew’s “Wild Botanic Garden”, have begun placing advanced bio-acoustics sensors in some of their trees to track which ones bees favour.

They hope it’ll help urban planners know which trees to plant in built-up areas, as a way of combating the worrying decline in bee numbers.

Pollination research lead Dr Janine Griffiths-Lee said: “Nearly 90% of our flowering plants depend on the contribution of pollinators, but in the UK the population of flying insects in the last 20 years has decreased by around 60%.

“It’s really hard to be able to put a figure on the decline of our pollinators, but we do know that globally the number is declining.

“And with that comes crop yield instability and the loss of an essential ecosystem service.”

Their new, non-invasive monitors listen for the buzz created by bees’ wing beats, building up heat maps of the most popular spots.

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bees
kew gardens
Kew scientists are using a ‘brand new’ study to track which trees bees prefer - to try and stem the decline in our vital pollinators.
Image:
Bio-acoustics sensors are placed in trees to track which ones the bees are more drawn to

‘We’re facing twin crises’

Dr Griffiths-Lee said: “If you think about the tree’s footprint, it’s very small, but they’re huge 3D structures covered in pollen and nectar, which are essential resources of pollinators.

“So we really wanted to think about which are the best trees for bees for us to plant, and that can inform landscape planners, urban architects.”

Eight different species of tree were chosen for the study, including horse chestnut and lime trees, with a mixture of native and non-native species.

The scientists have also been gathering DNA from pollen, which also helps them to map which plants and flowers the insects prefer.

Wakehurst’s director, Susan Raikes, calls the 535-acre estate a “living laboratory”, and said the project’s all about searching for nature-based solutions to the impacts of climate change.

“The stakes couldn’t be higher, really. We know that we’re facing these twin crises of biodiversity loss and climate change,” she added.

“We need to be able to understand, as the climate changes, which plants from warmer climes will be good here in the UK for pollinators in the future.

“If all of our native plants are struggling, then we need to find new sources of pollen – for us all to survive.”

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Gary Neville out of Sky Sports’ Premier League finale after ‘unprecedented action’

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Gary Neville out of Sky Sports' Premier League finale after 'unprecedented action'

Football pundit Gary Neville is to miss coverage of the Premier League finale on Sunday after being banned by Nottingham Forest, whose owner he recently criticised.

Neville had been due to commentate on Forest’s game against Chelsea on Sky Sports, which is being billed as a Champions League qualification shoot-out with both teams aiming for a top five finish.

But posting on Instagram, the former Manchester United and England defender said the broadcaster told him on Thursday that Forest “would not give me an accreditation or access to the stadium as a co-commentator”.

“I’ve had no choice but to withdraw from the coverage,” he added.

“I’ve dished out my fair share of criticism and praise in the last 14 years of doing this job and have never come close to this unprecedented action.”

Screengrab from the X feed of Sky Sports News of an incident between Nottingham Forest manager Nuno Espirito Santo and club owner Evangelos Marinakis after the Premier League match at the City Ground, Nottingham. Picture date: Sunday May 11, 2025. See PA story SOCCER Forest. Photo credit should read: Sky Sports/X/PA Wire. NOTE TO EDITORS: This handout photo may only be used in for editorial reporting purposes for the contemporaneous illustration of events, things or the people in the image or fa
Image:
Nottingham Forest owner Evangelos Marinakis (R) with manager Nuno Espirito Santo after the Premier League match against Leicester. Pic: Sky Sports News/PA

Sky backs Neville’s decision

Neville said while Forest “have every right to choose who they let into their own stadium”, it was “disappointing that a great club […] have been reduced to making such a decision”.

He said “it’s symptomatic of things that have happened over the last 12 months with the club”.

Sky Sports described Forest’s move as “an unprecedented and unwelcome step” and said it has decided “to present the game from Sky Studios in west London.

“As he was no longer able to commentate from the ground, Gary has chosen to not be part of the coverage on Sunday – a decision fully supported by Sky.”

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Neville has been highly critical of Forest owner Evangelos Marinakis.

He described Marinakis walking on to the pitch and exchanging words with head coach Nuno Espirito Santo after the club’s draw with Leicester earlier this month as “scandalous”.

Neville urged Nuno to quit the club and his social media post further enraged Marinakis, who had threatened Sky with legal action over comments made by the pundit earlier in the season.

After Forest’s 2-0 defeat at Everton last year, the club issued a statement on social media questioning the integrity of video assistant referee Stuart Atwell after claiming they had been denied three penalties.

Neville’s response to that, comparing Forest’s actions to those of a “mafia gang”, prompted an apology from Sky after they had been contacted by Marinakis’ lawyers.

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