Metro Bank (United Kingdom)

Ticker MTRO

Today's data summary

Market closed
% change
-5.32%
Price Pence
473.00
Change
-26.60
As of 21:57 17 Jul 2019
Market cap. Pound sterling
815.55 million
As of 21:57 17 Jul 2019

Latest updates

Metro Bank shares drop again

Metro Bank share graph
BBC

Shares in Metro Bank have slumped almost 9% today ahead of the struggling bank's shareholder vote on its proposed share placing.

The UK challenger bank announced plans in February to raise £350m by issuing new shares.

The bank's shares slumped 10% last Thursday after three US law firms announced they were investigating whether the lender’s bosses took part in securities fraud.

Good Morning

Welcome to today's Business Live page - we'll be with you until around 9.30pm.

US President Donald Trump arrives in the UK on a State visit this morning. he's expected to fly into Stansted Airport at around 9am.

Sir Philip Green's Arcadia retail group is facing a crucial week, with creditors set to vote on his proposed restructuring plans on Wednesday.

Today Metro Bank shareholders vote on its proposed share placing. The UK challenger bank announced plans in February to raise £350m by issuing new shares.

We'll bring you all the business news and would welcome your views - get in touch at bizlivepage@bbc.co.uk

FTSE 100 extends gains

The FTSE 100 has extended earlier gains but only just, and is now up 0.37% at 7,212.17.

Standard Life Aberdeen, the fund management group, is leading the blue chip risers, up 2.2% at 270.75p.

National Grid is the biggest faller, with its share price down 4% at 782.8p.

The FTSE 250 is up 0.75% at 19,087.54. Construction group Kier's share price has gained 9.1% at 284p. Metro Bank dominates the largest losers, down 6.3% at 725.75p.

Influential investor to vote against Metro Bank chair

metro bank logo
Getty Images

Back to Metro Bank, which announced earlier it had raised £375m from investors.

Legal & General Investment Management is to vote against Vernon Hill, the chairman of Metro Bank, at next week's annual general meeting.

Last year LGIM voted against Mr Hill and the remuneration report. It says it is taking the "rare step" of announcing how it intends to vote ahead of the AGM on 21 May.

It said it will vote not just against Mr Hill but also members of the audit committee and other directors.

"This announcement is being made to highlight and share these issues with other investors. Furthermore, there are continuing concerns following the recent announcements on accounting errors and the significant share price underperformance," LGIM said.

Sacha Sadan, director of corporate governance at LGIM, said: “As a long term investor of our clients’ assets, we hope that in sharing our voting intentions early, and that following the results of the AGM, this will help encourage Metro Bank to strengthen their governance structures.”

Metro Bank shares rise

metro bank
Reuters

Relief, at last, for Metro Bank this morning after it announced it had raised £375m from investors.

The shares are up 18% at 634p - above the 500p at which the fundraising was priced.

But how does that compare with this time last year? Then the shares were trading at £34.

Bank of England says Metro can fund future growth

Metro bank branch sign
DAN KITWOOD

The Bank of England's regulatory arm, the Prudential Regulation Authority, regulates Metro Bank and a Bank spokesperson has responded to that announcement that the lender has raised £375m of fresh funding - more than the £350m initially planned.

“The Prudential Regulation Authority welcomes the steps taken today by Metro Bank. Metro Bank is profitable and continues to have adequate capital and liquidity to serve its current customer base. It has raised additional capital in order to fund future growth," the Bank of England spokesperson said.

Metro Bank raises £375m

Hill and his dog
BBC

Metro Bank announced it has managed to raise £375m from a share placing after aiming for £350m to bolster its finances.

The shares were priced at 500p.

Vernon Hill, chairman and founder, pictured with his dog Duffy, said he was "really pleased"

"The [share] placing was significantly oversubscribed and as a consequence we raised a total of £375m.

"Although we've faced challenges in the past few months, we remain fully focused on providing the outstanding service and convenience that our customers expect of us. This growth capital will enable us to continue to expand the business and implement our strategic initiatives," he said.

Those challenges? Read here about the accounting issues the bank has faced and the 75% fall in its share price this year.

Metro Bank to sell shares at 500p each

Metro Bank
Getty Images

Metro Bank is hoping to raise £350m by selling shares at 500p each. For comparison, today's closing price was 545p.

The bank says it intends to use the funds raised to enable it to further grow its loan balances and risk-weighted assets, while investing in the expansion of stores and new technologies.

A shareholder meeting will be held on 3 June to approve the share issue.

Metro Bank

Today Programme

BBC Radio 4

metro
Getty Images

Metro Bank, currently trying to shore up its finances, is expected to announce its final £350m fundraising after the market closes.

A mixture of new and existing investors is expected, which is a departure from the usual call for cash from owners.

Monique Wong, senior portfolio manager at Coutts, says it will provide a breather for the bank, whose share price has gone from about £40 to about £5.

Rents, rates and other costs will weigh on its performance, however.