Metro Bank reaches agreement to strengthen its financial position

Metro Bank has announced that it has secured a deal with investors to ensure its future following reports of the need to raise funds to strengthen its balance sheet. The UK lender has raised £325m in new funding and has also refinanced £600m of debt. Metro Bank's CEO described the deal as "a new chapter" for the troubled bank. The bank's shares experienced a significant drop last week but later recovered. Metro Bank has consistently stated that its finances remain strong and it is meeting all regulatory requirements. The bank, which was established in 2010, positioned itself as a challenger bank to the traditional high street names and has since acquired 2.7 million customers and holds around £15bn of deposits. Reports about its financial state had raised concerns, and it was also noted that several competitors were considering bids for parts of the business. However, Metro Bank has now confirmed a capital raise of £325m from existing and new shareholders. After the transaction is completed, the bank's largest shareholder, Spaldy Investments, will become the controlling shareholder with a 53% stake in the company. The CEO stated that this marks a new chapter for the bank and it will continue expanding and becoming more profitable. In July, Metro Bank announced plans to open 11 more branches in the north of England over the next few years. The bank has faced challenges in recent years, including an accounting scandal in 2019 and a recent request to use its own mortgage and asset valuation system, which was declined by regulators. News that Metro Bank is in discussions about selling up to £3bn of its residential mortgages also emerged. The Bank of England welcomed the announcement and has been closely monitoring the situation.