Metro Bank to axe 1,000 jobs but commits to high-street branches
Metro Bank returned to profit for the first time since 2018 after announcing up to 1,000 jobs will go by next month.
The high-street lender said it will cut more than a fifth (22%) of its 4,266-strong workforce – more than it said it initially planned.
The news came as it reported pre-tax profit of £30.5m in 2023, compared with a £70.7m loss the year before.
It had planned to cut annual costs by £50m in the first quarter of 2024, but said it now planned to cut an additional £30m by the end of the year.
Launched to challenge the dominance of Britain’s big banks, Metro said it remained committed to its high-street branch model but admitted it had saved money by reducing opening hours across the business. It said it still planned on opening new stores in northern England.
Metro also reported that it added 246,000 personal and business accounts and its total deposits increased to £16.5bn in February this year.
The bank ran into problems in 2019 when it admitted accounting errors and had to admit it did not have enough capital to meet regulatory requirements.
The Bank of England rejected Metro’s request to use its own model to assess risks on its mortgages and assets last September, forcing it to seek emergency funding. It was rescued from potential collapse by Colombian billionaire Jaime Gilinski Bacal.
Daniel Frumkin, Metro’s chief executive, said: “During the year we also launched a cost-saving plan which included reducing store hours and roles across the organisation. These efforts will ensure the bank is right-sized for the future, with a strong focus on both digital and great customer service.
“After addressing our capital position in Q4, we also launched a successful deposit campaign, with deposits as at the end of February 2024 at the highest level in three years.”
