Metro Bank plots capital-raise in bid to allay City concerns
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.
Read more
Banks warned on branch closures as access to cash to be ‘protected in law’
Banks accused of closing accounts belonging to British Muslims
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.
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.”
Please use Chrome browser for a more accessible video player
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.
Fresh appeals have been made for information on what would have been the 20th birthday of Ellis Cox, who was shot dead in Liverpool last June.
A number of people have been arrested in connection with the murder at Liver Industrial Estate, but no one has been charged yet.
The 19-year-old’s family and police have paid tribute to him and called for those with information to come forward.
He was shot in the back after a confrontation between his friends and another group of up to three males on Sunday 23 June.
Ellis Cox who was shot dead in June 2024. Pic: Merseyside Police
His mother Carolyn paid tribute in an appeal to coincide with what would have been his 20th birthday.
“He was so kind… so laid back, so calm, so mature for his age. And he was just funny. Very funny.
“He was my baby… no mum should have to bury a child. He was my life. And I don’t know what to do without him.”
Mum Carolyn Cox (left) and aunt Julie O’Toole (right) are looking for answers
Meanwhile, his aunt Julie O’Toole said he was “the sort of person I think you’d be hard pressed to find anyone to say anything negative about. He was loyal, fiercely loyal… everything was about his family”.
To pay tribute to Ellis, Liverpool City Council will be lighting up the Cunard Building and Liverpool Town Hall in orange on Saturday.
DCI Steve McGrath does not believe Ellis was involved in criminality
Detective Chief Inspector Steve McGrath, the senior investigating officer, spoke about the information gathered so far, six months on from Mr Cox’s murder.
“I’m satisfied that the group that he was with was probably the target… and I would say that’s got something in relation to do with localised drug dealing in that area. But Ellis had no involvement in that whatsoever,” he said.
He added that police are looking for “really significant pieces of evidence now”, including “trying to recover the firearm that was used in relation to this, looking to recover the bikes that were used by the offenders”.
Read more from Sky News:
The Commons venue that changed political history
Link between A&E waiting times and chance of death
Missing sisters made earlier visit to same bridge
Mrs Cox also appealed for people to come forward with information.
“If you know anything, don’t let us get to [his] next birthday and still know nothing.
“We need to get justice for Ellis. And we need to get the people who took him from us off the streets.”
UK
Reward of £20,000 offered to identify parents of three siblings abandoned as babies over eight years
A £20,000 reward is being offered for information that leads to the identification of the parents of three siblings found abandoned in London over eight years.
The Metropolitan Police said that despite more than 450 hours of CCTV being reviewed, the parents of the three children, known as Elsa, Roman and Harry, remain unidentified.
However, it is believed their mother has lived in an area of east London “over the past six years”.
Elsa was believed to be less than an hour old when she was found by a dog walker on 18 January last year, in East Ham, east London.
In the months that followed it was found that she had two siblings who were also abandoned in similar circumstances, in the same area of London, in 2017 and 2019.
On Saturday, police said the independent group Crimestoppers had offered a £20,000 reward for information passed to the charity, which will expire on 18 April.
Detective Inspector Jamie Humm, of the Met’s child abuse investigation team, said: “We have carried out extensive inquiries over the past year to try and locate Elsa’s parents.
Baby Roman. Pic: Met Police/PA
Read more from Sky News:
The Commons venue that changed political history
Link between A&E waiting times and chance of death
Missing sisters made earlier visit to same bridge
“This has involved reviewing over 450 hours of CCTV and completing a full DNA structure of the mother.
“We have serious concerns for the wellbeing of the parents, especially the mother, and are continuing to work closely with Newham Council and appeal for the public’s help for information.
“I believe that someone in the area will have been aware of the mother’s pregnancies and that within the community there may be (or) have been concerns for this mother’s welfare.
“Thanks to the DNA work of forensic colleagues, police will be able to eliminate any unconnected person quickly and easily, as such I would ask you to contact police with confidence.”
The baby was found at the junction of Greenway and High Street South in Newham. Pic: PA
Elsa was found wrapped in a towel in a reusable shopping bag, of which police have also released a new image, and was kept warm by the dog walker. She was uninjured.
Police said at the time that it was “highly likely” that she was born after a “concealed pregnancy”.
The Boots bag in which Baby Elsa was found abandoned by a dog walker in Newham on 18 January 2024. Pic: Met Police/PA
The BBC reported that at an initial court hearing, East London Family Court was told it took doctors three hours to record Elsa’s temperature because of the cold, and the Met Office said that temperatures dropped to as low as -4C on the night she was found.
Hospital staff named her Elsa in a reference to the character from the film Frozen.
The police investigation into the identity of the children’s parents continues, and anyone with information is asked to call police on 101 or post @MetCC ref Operation Wolcott.
People can also contact Crimestoppers anonymously at any time on 0800 555 111 or via Crimestoppers-uk.org.
Fresh appeals have been made for information on what would have been the 20th birthday of Ellis Cox, who was shot dead in Liverpool last June.
A number of people have been arrested in connection with the murder at Liver Industrial Estate, but no one has been charged yet.
The 19-year-old’s family and police have paid tribute to him and called for those with information to come forward.
He was shot in the back after a confrontation between his friends and another group of up to three males on Sunday 23 June.
Ellis Cox who was shot dead in June 2024. Pic: Merseyside Police
His mother Carolyn paid tribute in an appeal to coincide with what would have been his 20th birthday.
“He was so kind… so laid back, so calm, so mature for his age. And he was just funny. Very funny.
“He was my baby… no mum should have to bury a child. He was my life. And I don’t know what to do without him.”
Mum Carolyn Cox (left) and aunt Julie O’Toole (right) are looking for answers
Ellis’ mum described him as ‘kind” and “funny. Pic: Merseyside Police
Meanwhile, his aunt Julie O’Toole said he was “the sort of person I think you’d be hard pressed to find anyone to say anything negative about. He was loyal, fiercely loyal… everything was about his family”.
To pay tribute to Ellis, Liverpool City Council will be lighting up the Cunard Building and Liverpool Town Hall in orange on Saturday.
DCI Steve McGrath does not believe Ellis was involved in criminality
Detective Chief Inspector Steve McGrath, the senior investigating officer, spoke about the information gathered so far, six months on from Mr Cox’s murder.
“I’m satisfied that the group that he was with was probably the target… and I would say that’s got something in relation to do with localised drug dealing in that area. But Ellis had no involvement in that whatsoever,” he said.
He added that police are looking for “really significant pieces of evidence now”, including “trying to recover the firearm that was used in relation to this, looking to recover the bikes that were used by the offenders”.
Read more from Sky News:
The Commons venue that changed political history
Link between A&E waiting times and chance of death
Missing sisters made earlier visit to same bridge
Mrs Cox also appealed for people to come forward with information.
“If you know anything, don’t let us get to [his] next birthday and still know nothing.
“We need to get justice for Ellis. And we need to get the people who took him from us off the streets.”
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports10 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway