A report on Sky News says talks are underway for Barclays hto acquire the £3 billion mortgage book of the troubled Metro Bank.
A deal is likely to be struck by the end of the year, the report adds – although both banks are currently refusing to comment directly on the negotiations.
In October Metro Bank announced a £325m capital raise and £600m debt refinancing in a bid to bolster its finances after a serious of problems including accounting errors, leadership departures and delayed regulatory approval for key capital relief. In one day that month, the bank’s share value fell by 25 per cent.
Metro Bank, which has some 2.7m customers, became the first new lender to open on Britain’s high streets in over 100 years when it launched in 2010.
It offers current accounts, business accounts, personal loans and insurance products, and employs about 4,000 people, operating from about 75 branches across the country.
However it’s now reviewing whether to stay open seven days a week in the light of slashing its workforce by 20 per cent. Since launching, Metro Bank tried to differentiate itself from more traditional lenders by staying open for longer.
