**Follow-Up Statement from the Board of Directors of Alltrust Services Limited Regarding Metro Bank Financial News**
Statement from the Board of Directors of Alltrust Services Limited Regarding Recent Financial News about Metro Bank
5.10.23 In light of the recent financial news concerning Metro Bank, the Board of Directors of Alltrust Services Limited wishes to assure our stakeholders that we are closely monitoring the situation. We are staying abreast of all news and information regarding today’s negative news on Metro Bank.
“As a board, we are committed to maintaining a strong understanding of the evolving situation and its potential impact on our operations and stakeholders. As directors, we are considering all options and avenues to ensure the continued stability and integrity of our services,” stated the Board of Alltrust Services Limited.
We remain dedicated to upholding the highest standards of corporate governance and ensuring the transparency and reliability of our operations. We will continue to communicate any relevant developments as necessary.
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10.10.23 Please find included below Metro Bank’s latest press release:
Metro Bank was founded in 2010 as the first full-service, independent, new high street bank to open in the UK in more than 150 years. The Company seeks to become the number one community bank in the UK and uses a disruptive, service-led, deposit-driven funding model and a customer service proposition that emphasises simple, straightforward banking in order to turn its customers into “FANS” (customers who recommend someone to bank with the Company).
Metro Bank has built a platform with scalable and robust infrastructure, while staying true to the Company’s community banking model. However, recent capital levels constrained the Company’s ability to grow lending balances significantly in the near term.
On 8th October 2023, Metro Bank Announced a Successful Capital Package consisting of £325m Capital Raise and £600m Debt Refinancing. The highlights include:
- Secured £325m capital raise, comprising £150m of new equity and £175m of new debt, alongside £600m of debt refinancing, enhancing balance sheet strength and accelerating earnings potential.
- Capital Package significantly strengthens CET1 ratio, taking Metro Bank out of regulatory capital buffers.
- Provides opportunity to grow assets significantly over the coming years, via a gradual shift in asset side growth towards specialist mortgages and commercial lending to optimise risk adjusted returns; supported by continued success in raising deposits and driving current account growth.
- Continued positive trading in Q3 2023, made a statutory profit after tax and continued momentum in Personal and Business Current Account growth and customer acquisition.
- The Capital Package also allows Metro Bank to continue to evolve its products and services to meet the banking needs of its customers both digitally and in-store.
“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.”
Dan Frumkin, Metro Bank CEO
Please find included below links to Metro Bank’s response to press speculation and their most recent trading update.
Metro Bank Holdings PLC (“Metro Bank”) (the “Company”)
Legal Entity Identifier: 984500CDDEAD6C2EDQ64
Response to press speculation
Metro Bank notes the recent press speculation regarding a potential capital raise. Following Metro Bank’s update on capital planning on 12 September 2023, the Company continues to consider how best to enhance its capital resources, with particular regard to the £350m senior non-preferred notes due in October 2025. The Company continues to meet its minimum regulatory capital requirements and had a total capital plus MREL ratio of 18.1%and a leverage ratio of 4.4% as at 30 June 2023.
The Company is evaluating the merits of a range of options, including a combination of equity issuance, debt issuance and /or refinancing and asset sales. No decision has been made on whether to proceed with any of these options.
For three consecutive quarters ended 30 June 2023, the bank has been profitable on an underlying basis, and it expects the Q3 trading update to show continued momentum in Personal and Business Current Account growth and customer acquisition, in line with expectations. Metro Bank continues to be well positioned for future growth.