Future of bank uncertain
Metro shares tumble amid delay to raising capital
Metro bank is attempting to fill a hole in its accounts (pic: Terry Murden)
Shares in Metro Bank continued to plummet as investors as the company failed to deliver a promised injection of capital to shore up its balance sheet.
The value of the 66-branch bank fell by as much as 15% at one stage on Thursday, before closing 8.3% lower to close at a record low of 541p. The shares are down 83% over the year.
Metro Bank, which has been focused around Greater London, is trying to raise £350m after revealing in January it had miscalculated how much capital it needed to support a number of business loans.
That sparked a 40% fall in its shares and they have continued downward, prompting chief executive Craig Donaldson to reassure investors ad staff that there were “absolutely no question marks” over the bank’s future. However, some of its larger business customers had begun taking money out of the bank.
The Prudential Regulation Authority is monitoring the progress of the cash-raising proposal.
Advice group ISS has urged shareholders to vote against Metro’s remuneration policy at its annual meeting later this month. Despite its woes it proposes paying chief finance officer David Arden a £288,000 bonus.