Metro Bank’s biggest shareholder funds capital rescue

A regional branch of Metro Bank

Challenger bank Metro Bank has raised £325m in a capital raise, consisting of £150m of new equity led by Spaldy Investments, Metro Bank’s largest shareholder, controlled by Colombian billionaire Jaime Gilinski Bacal.

Spaldy will become the controlling shareholder of Metro Bank with a c.53% shareholding but is subject to “certain customary conditions and regulatory approvals”.

Last week reported that the share price had plummeted amidst market fears of a costly refinancing and that the bank was weighing up options.

A deal was struck with Bacal over the weekend.

Daniel Frumkin, Chief Executive Officer at Metro Bank, said: “Today’s announcement marks a new chapter for Metro Bank, facilitating the delivery of continued profitable growth over the coming years. Metro Bank made a statutory profit after tax in Q3 2023, and continues to demonstrate ongoing momentum as we strive towards our ambition to be the UK’s number one community bank.

“Our strong franchise is underpinned by our loyal customer base and engaged colleagues and we will continue to develop the Metro Bank offer to provide the digital and physical banking services our customers expect. We thank our shareholders and noteholders for their continuing support of Metro Bank and our customers.”

Jaime Gilinski Bacal, founder of Spaldy Investments Limited, said: “I have been an active investor in Metro Bank since 2019.  The opportunity to become the Bank’s major shareholder is driven by my belief in the need for physical and digital banking underpinned by a focus on exceptional customer service.  I believe that the package announced today enables the Bank to pursue growth and build on the foundational work undertaken over the past three years.”

Founded by American billionaire Vernon Hill in 2010 Metro Bank has often been touted as a customer friendly challenger to the big four clearing banks in the UK. It holds £15.5bn in UK customer deposits and boasts 2.8 million customer accounts which it operates through a network of 76 ‘stores’ across the UK, including Liverpool, Manchester, Bradford, Leicester, Northampton, Sheffield, Merry Hill, Birmingham, Wolverhampton Swindon, Bath, and Bristol.

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