In February 2021, Metro Bank completed the £3.04 billion sale of a residential mortgage portfolio to NatWest. In February 2021, Metro Bank bought RateSetter's entire portfolio of loans, valued at £384m. Metro Bank would continue the RateSetter brand and its operations, but new unsecured personal lending would be funded by the bank's deposits, not through peer-to-peer. The purchase was subject to regulatory approval and the agreement of Retail Money Market Ltd shareholders, and was expected to complete in the fourth quarter of 2020. The price would be between £2.5 million and £12 million, depending on performance over the next three years. It was announced in August 2020 that Metro Bank had agreed to acquire Retail Money Market Ltd, a London-based provider of peer-to-peer loans trading as RateSetter. Metro Bank acquired SME Finance in August 2013, and rebranded the business as Metro Bank SME Finance in May 2014. It is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority. Metro Bank provides banking services to personal and business customers. Services A Metro Bank debit card, credit card and cheque book issued in 2011 On 6–8 October 2022, Metro Bank's mobile banking app failed, resulting in its customers being unable to manage their accounts remotely. In November 2021, Metro Bank entered talks with the Carlyle Group concerning a possible takeover bid. Additionally, large depositors began withdrawing funds: Metro Bank admitted that there had been a 4% drop in its deposits in the first quarter of 2019 because of "adverse sentiment". By March 2019, the BBC reported that Metro Bank shares were the second most shorted shares on the UK stock market. Īs a result of the admission and the share issue announcement, Metro Bank's share price fell sharply, losing 40% of its value in the month after the announcement and 75% in less than four months. In December 2021, the bank was fined £5.38m by the PRA after their investigation, saying that it had "failed to meet the standards of governance and controls expected of it" with regards to the risk weighting and classification of commercial loans. It was also reported that the PRA and the Financial Conduct Authority were to investigate the circumstances of the error. To correct the error in the capital classification, Metro Bank announced a £350m share issue and said it would reduce its growth plans. The miscalculation was identified through a review by the Prudential Regulation Authority (PRA) but Metro Bank erroneously gave the impression that the bank had identified the incorrect classification itself. In January 2019, Metro Bank admitted classifying a portfolio of commercial loans for capital purposes incorrectly, thereby failing to hold sufficient capital to meet regulatory requirements the error applied to around 10% of its loan book. It was aiming to have 200 UK branches open by 2020. Metro Bank increased its account holders by 50% in the first half of 2013 for a total of 200,000 customer accounts, including 15,000 business accounts. He added: "Our primary goal is to expand the business . and profit certainly will come". In an interview with the Financial Times, Hill said the bank was ".in line with the business plan to rapidly grow this company". On the Daily Telegraph reported that, following a loss of £8.8 million in the first quarter of 2013, Metro Bank's pre-tax losses had exceeded £100 million in less than three years since its launch, but the bank stated that these were planned for, and were "a result of its growth initiatives". In the same year, Forbes magazine reported that Metro's flagship Holborn branch had ".garnered $200 million in deposits, four times the total at the average mature American branch". Cohen of hedge fund SAC Capital Advisors, and New York real estate investors the LeFraks and David and Simon Reubens. In 2012, the bank raised an additional $200 million in funding from investors including Fidelity, Steven A. Its first branch opened on 29 July 2010 in Holborn, central London. It planned to open between 200 and 250 branches in Greater London within ten years of starting up. Metro Bank was granted its licence by the Financial Services Authority on 5 March 2010, the first high-street bank to be granted such a licence for over 150 years. Metro Bank in Sutton, London (top) and Borehamwood (bottom)
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