Metro Bank has launched a strategic review that could result in a sale, marking a potential end to its time as a publicly listed company following a turbulent period since its 2016 flotation. The bank, which operates 78 branches across the UK, said its board 'unanimously believes' that evaluating potential interest through a sale will 'maximise the value creation opportunities available'. The lender has a market capitalisation of over £1 billion.
The sale process concludes a three-year turnaround programme during which Metro Bank shifted from mainstream lending to focus on a more 'underserved market'. In January the bank launched its third round of redundancies in three years. However, the restructuring has borne fruit: in August it reported its most profitable half-year in its history, with pre-tax profits surging 41 per cent to £61 million. The bank's share price has gained nearly 50 per cent this year.
Metro Bank was founded in 2010 by Anthony Thomson and Vernon Hill and became the first high street bank to launch in Britain in more than 150 years. However, it has experienced significant difficulties. In 2019 it admitted misclassifying a number of commercial loans, prompting investigations by the Financial Conduct Authority and Prudential Regulation Authority. It was forced to raise emergency capital in 2023 after its share price dropped more than 50 per cent.
The Colombian billionaire Jaime Gilinski Bacal holds over 50 per cent of the bank following a £325 million rescue deal in 2023. His willingness to exit will significantly influence the sale process. Metro Bank said it 'is not in any active discussions' with potential buyers, but could attract interest from private equity firm Pollen Street Capital, which approached the bank last year with a delisting proposal. Rival challenger banks may also bid, given Metro Bank's previous merger discussions with Aldermore and a rejected approach from Shawbrook in 2023.
For UK savers and borrowers, a successful sale could lead to changes in Metro Bank's lending focus, branch network and account offerings depending on who acquires the lender. The potential takeover adds to a challenging year for London-listed companies, following takeovers of EasyJet, Segro, Beazley and approaches to Schroders.