8.6 C
New York
Thursday, July 29, 2021
Home Challanger banks RBS Fund Takes Back £50M From Metro Bank!

RBS Fund Takes Back £50M From Metro Bank!

Metro Bank has announced that it will repay £50 million of bailout funding to RBS. The announcement arrives as the bank altered its strategy after releasing its full-year results and scaled-back its plans for branch expansion over the next few years.

The company’s plans were thwarted when it was revealed that it was miscategorizing a number of loans when figuring out capital requirements.

The error caused the departures of Chairman Vernon Hill and CEO Craig Donaldson. The bank had to reconfigure its strategy after fourth-quarter results showed a pre-tax loss of £130.8 million, which included a £68 million write-down related to stopping IT projects that are no longer part of the bank’s strategy.

Metro, Starling, and ClearBank were given a combined £280m from the RBS bailout fund in February 2019, beating off competition from better-known brands TSB, Co-operative Bank, and CYBG.

Dan Frumkin, CEO Metro bank

Dan Frumkin, chief executive officer at Metro Bank, says: “Our financial performance reflects a very challenging year for Metro Bank. External headwinds, internal challenges and actions we took to put the business on a more positive trajectory are reflected in the results.”

Avatar
Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Starling Bank’s first acquisition is Fleet Mortgages

UK challenger Starling bank acquires Fleet mortgages as its first corporate acquisition.

Starling Bank revenue skyrockets by 600%

The digital bank Starling has managed to grow revenues to £97.6 million from £14 million in the previous period.

Revolut launched a travel booking feature

After Softbank lead an $800 million investment into Revolut, the UK-based challenger bank came up with another feature - travel booking.

Kid accounts and challenger bank options for children

Revolut junior vs. Starling Bank Kite? 🤔 Once again Everly - challenger bank news joined forces with the Scientia team and their Fintech Insights, the digital banking research platform, to compare several challenger banks' junior accounts from parent's and kid's perspectives! 👍 Check the full article here