Metro Bank agrees deal to avoid takeover – what does it mean for customers?

Metro Bank secured a late-night rescue deal, raising extra funds from investors, to shore up its financial future.

On Sunday night the bank raised £325 million in new funding and managed to refinance £600 million of debt. Colombian banking billionaire Jamie Gilinski Bacal contributed £102 million to the deal and has become the largest investor in the bank with a 52% stake.

Concerns about the bank’s future were raised last week when it became clear that it needed to raise cash to continue trading.

Founded in 2010 following the financial crisis, it was the first bank to launch in the UK in more than 100 years and has undergone massive growth.

It now has 2.7 million customers and holds about £15 billion worth of deposits across 76 branches, which it has committed to keeping open seven days a week.

Despite its financial woes, Metro Bank has continued to focus on opening new branches - with 11 planned for Northern England next year - while other lenders have been closing branches and shifting to online banking to keeps costs low.

 What does it all mean for Metro Bank customers?

After a worrying few days, Metro Bank is now trading as normal. It has moved to reassure customers that it’s business as normal now that the investment is in place.

The bank issued a statement saying: “Our strong franchise is underpinned by our loyal customer base and engaging colleagues, and we will continue to develop the Metro Bank offer to provide the digital and physical banking services our customers expect.”

Customer deposits in Metro Bank up to £85,000 are protected by the Financial Services Compensation Scheme, which will mean the majority of customers will be protected if the bank faces any further issues.