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Metro Bank to make £50m cost cuts as it secure £325m bail-out

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Metro Bank to make £50m cost cuts as it secure £325m bail-out By Proactive Investors

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Published Nov 30, 2023 08:02
Updated Nov 30, 2023 08:41

© Reuters Metro Bank to make £50m cost cuts as it secure £325m bail-out

Proactive Investors – Metro Bank PLC (LON:MTRO) has announced £50 million of cost-cutting, which will reportedly result in 800 job losses, alongside a £325 million financial rescue package.

As part of the bail-out, investors have been asked to back a £150 million placing of new shares alongside the issue of £175 million of new MREL notes, which are financial instruments that banks must hold to ensure they can cover losses in case of failure.

Metro reckons the new investment will significantly improve its balance sheet – and by extension its core tier-one, and MREL ratios. As part of the overhaul, the challenger bank is also restructuring £600 million of debt.

Chief executive Daniel Frumkin said: “The support shown from our investors through this transaction will allow Metro Bank to accelerate its growth plans, with the new capital allowing us to unlock the potential in the business and deliver sustainable profitable returns as we strive to be the number one community bank.”

The cost cuts will incur a one-off £10-£15 million charge.

Read more on Proactive Investors UK

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Metro Bank to make £50m cost cuts as it secure £325m bail-out

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