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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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Rival groups face off outside migrant hotel – as asylum seekers ‘blow kisses’ at protesters

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Rival groups face off outside migrant hotel - as asylum seekers 'blow kisses' at protesters

Several demonstrators have been detained after rival groups faced off over a hotel accommodating asylum seekers in north London, with police breaking up brief clashes.

The Metropolitan Police has since imposed conditions on the protest and counter-protest outside the Thistle City Barbican Hotel in Islington.

The protest was organised by local residents under the banner “Thistle Barbican needs to go – locals say no”.

The group of several hundred people waved union flags and banners, and one man chanted: “Get these scum off our streets.”

Anti-immigration protesters outside the Thistle City Barbican Hotel in central London, which houses asylum seekers. Pic: PA
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Anti-immigration protesters waved Union Jack flags. Pic: PA

A larger group staged a counter demonstration to voice support for asylum seekers, bearing a banner that read: “Refugees are welcome.”

People inside the hotel, believed to be migrants, watched on, with some waving and blowing kisses from the windows.

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People believed to be asylum seekers waved from the windows of Thistle City Barbican Hotel. Pic: PA
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People believed to be asylum seekers waved the hotel windows. Pic: PA

Pro-immigration protesters gather outside the Thistle City Barbican Hotel in central London, which houses asylum seekers. Pic: PA
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Pro-immigration protesters gathered by the Thistle City Barbican Hotel. Pic: PA

A man wearing an England football shirt was detained by police after getting into an altercation with officers.

There have been nine arrests so far, seven of which were for breaching conditions police put on the protests under the Public Order Act.

Rival groups separated by police

Another protest was scheduled in Newcastle on Saturday, outside The New Bridge Hotel, as anti-migrant sentiment ripples through some communities around the country, also flaring up recently in Epping.

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Last week: Protesters divided over migrant hotels

The counter-protest in London was organised by local branches of Stand Up To Racism, and supported by former Labour leader and Islington North MP Jeremy Corbyn.

Other community groups including Finsbury Park Mosque and Islington Labour Party were also involved.

Groups online that backed the original protest include “Patriots of Britain” and “Together for the Children”.

At one point, a large group of masked protesters dressed in black, calling themselves anti-fascists, appeared from a side street and marched towards the rival group outside the hotel.

The two groups briefly clashed before police rushed in to separate them.

Masked protesters gather outside the Thistle City Barbican Hotel in central London, which houses asylum seekers. Pic: PA
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Pic: PA

Supporters of local protest group "Thistle Barbican needs to go - locals say no" gathering outside the Thistle City Barbican Hotel. Pic: PA
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Supporters of local protest group ‘Thistle Barbican needs to go – locals say no’. Pic: PA

Why are asylum hotels used?

The government is legally required to provide accommodation and subsistence to destitute asylum seekers while their claims are being decided, most of whom are prohibited from working.

A jump in the use of hotels since 2020 has been attributed to the impacts of the COVID pandemic, a backlog in unresolved asylum cases, and an increase in the number of migrants crossing the Channel in small boats.

However, the number of asylum seekers living in hotels has fallen recently, from 38,079 at the end of 2024 to 32,345 at the end of March 2025, according to the Refugee Council.

How police tried to keep groups apart

The police imposed conditions on both groups in London to prevent “serious disorder” and minimise disruption to the community.

Those in the anti-asylum hotel protest were told to remain within King Charles Square, and to gather not before 1pm and wrap up by 4pm.

Those in the counter-protest were to required to stay in an area in Lever Street, and assemble only between 12pm and 4pm, but were still in eye and ear shot of the other group.

Chief Superintendent Clair Haynes, in charge of the policing operation, said: “We have been in discussions with the organisers of both protests in recent days, building on the ongoing engagement between local officers, community groups and partners.

“We understand that there are strongly held views on all sides.

“Our officers will police without fear or favour, ensuring those exercising their right to protest can do so safely, but intervening at the first sign of actions that cross the line into criminality.”

Meanwhile, the protest in Newcastle was promoted by online posts saying it was “for our children, for our future”.

The “stop the far right and fascists in Newcastle” counter-protest was organised by Stand Up To Racism at the nearby Laing Art Gallery.

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Jon Ruben remanded into custody on child cruelty charges after children fell ill at summer camp

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Jon Ruben remanded into custody on child cruelty charges after children fell ill at summer camp

A man has been remanded into custody charged with child cruelty offences after allegedly lacing sweets with sedatives.

Jon Ruben, 76, of Ruddington, Nottinghamshire, appeared at Leicester Magistrates’ Court on Saturday after youngsters fell ill at a summer camp in Stathern, Leicestershire.

He has been charged with three counts of wilfully assaulting, ill-treating, neglecting, abandoning or exposing children in a manner likely to cause them unnecessary suffering or injury to health.

The charges relate to three boys at the camp between 25-29 July.

A general view of the scene in Stathern, Leicestershire, after a 76-year-old man was arrested on suspicion of administering poison at a summ
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The scene in Stathern, Leicestershire. Pic: PA

Ruben spoke only to confirm his name, age and address.

Police received a report of children feeling unwell at a camp being held at Stathern Lodge, near Melton in Leicestershire, last Sunday.

Officers said paramedics attended the scene and eight boys – aged between eight and 11 – were taken to hospital as a precaution, as was an adult. They have since been discharged.

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Police said the “owners and operators of Stathern Lodge are independent from those people who use or hire the lodge and are not connected to the incident”.

Leicestershire Police has referred itself to the Independent Office for Police Conduct, after officers initially reported the incident as having happened on Monday, only to later amend it to Sunday.

It is still unclear when officers responded and whether that is why the watchdog referral has been made.

Ruben will next appear at Leicester Crown Court on 29 August.

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‘This shouldn’t have happened’: Bishop who interrupted church choir in dressing gown apologises

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'This shouldn't have happened': Bishop who interrupted church choir in dressing gown apologises

A bishop who interrupted a church concert in his dressing gown – and told singers to “leave his house” – has formally apologised to the choir.

Jonathan Baker was filmed standing barefoot at a microphone as he criticised performers for making a “terrible racket” at St Andrew’s Church in central London.

Addressing the City Academy Voices choir directly, the bishop of Fulham said: “I write to apologise for the distress and offence I caused in bringing the concert to a premature end.

“This should not have happened … I also apologise for remarks which were made in haste, and which have understandably caused hurt and distress.”

The bishop, in his dressing gown, gave the choir a dressing down
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The bishop, in his dressing gown, gave the choir a dressing down

Mr Baker had demanded for the performance to stop because it was 10pm – and says he didn’t realise the choir had booked the church until 11pm.

In the statement obtained by Sky News, he added: “I have lived here on site at St Andrew’s for 10 years, for much of which City Academy has rehearsed and performed here.

“You have been, and continue to be, welcome – and I hope that you will be able to continue the relationship with us.

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“I can give you every assurance that the events of Friday evening will not recur, and I apologise again to performers (especially those unable to perform at the end of the evening) and the audience alike.”

The choir performed their last song
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The choir performed their last song

The choir was performing to a 300-strong audience in Holborn when the lights were suddenly turned off, with Mr Baker declaring the concert was “over”.

A church employee then asked the crowd to leave quietly and for the musicians to step down from the stage, attracting boos from the audience.

The choir went on to perform one last song, an A cappella version of ABBA’s Dancing Queen, before bringing their show to a close.

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Bishop
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Jonathan Baker has apologised

One member of the audience, who was attending with his 10-year-old daughter, told Sky News he initially thought the interruption was a staged joke.

Benedict Collins had told Sky News: “This work deserves respect, not to be disparaged as a ‘terrible racket’. The people here had put their heart and soul into it.

“The bishop cut them off in midstream, preventing soloists who had worked their hardest from singing – and preventing the audience, which included people of all ages, from enjoying it to the end.”

The choir told Sky News it was “upsetting” that they were unable to finish their show as planned, but “hold no hard feelings and wish the bishop well”.

A spokesperson added: “If anyone is thinking of joining one of our choirs, the City Academy Voices rehearse on Mondays in central London. Dressing gowns optional.”

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