Crisis over? Metro Bank deposit outflows stabilise following dramatic fundraise
Metro Bank confirmed this morning that deposit outflows have returned back to normal levels after its dramatic fundraise last month.
In a third quarter trading update, the embattled challenger said it had seen “an increase in deposit outflow rates” before it announced its capital package in early October.
“Since the announcement, daily flows have returned to more normal ranges,” it said.
Last month the bank had to shore up its balance sheet in an attempt to facilitate expansion.
After a dramatic week, Metro announced a major refinancing package, including a £325m capital raise led by existing shareholder Spaldy Investments, alongside £600m of debt refinancing.
Spaldy Investments — led by Colombian billionaire Jaime Gilinski Bacal — became the controlling shareholder with a stake of around 53 per cent.
The bank is still looking to sell £3bn worth of residential mortgage loans, which makes up around 40 per cent of its loan book.
In today’s trading statement, Metro Bank said the third quarter – which ended before last month’s events – delivered continued momentum in personal and business current accounts as well as a “modest statutory profit after tax”.
“Lending reflects continued controlled asset origination and as such capital resources were broadly flat relative to 30 June levels,” it said.