Metro Bank admitted savers were withdrawing money from their accounts amid fears about their future ahead of an emergency fundraiser last month.
In October, the troubled lender secured a £925m lifeline which included the sale of £150m of new shares as well as £175m of new debt, plus a £600m refinancing of existing loans.
Metro said yesterday it saw “an increase in deposit outflow rates” ahead of the deal, as customers rushed to withdraw their cash.
He said withdrawals have now “returned to more normal ranges.”
Withdrawals: Metro Bank said it saw “an increase in deposit outflow rates” ahead of last month’s fundraising deal as customers rushed to withdraw their cash.
The company also revealed that deposits for the three months to September amounted to £15.6 billion, down 5 per cent year-on-year, while the size of its loan portfolio fell 2 per cent to £12 .5 billion pounds.
Metro shares rose 1.1 per cent, or 0.45p, to 43p.
At the time of the surge in withdrawals, Metro had posted profits for three consecutive quarters, but its capital levels (the amount of easily accessible cash held by the bank) were just above legal requirements and posed a threat to its ability credit. .
In September, the Bank of England’s Prudential Regulatory Authority denied it permission to assess mortgage risks using its internal models, which big banks can use to improve profitability.
Metro has also struggled to cut costs thanks to its network of 76 branches across the UK.
The October bailout handed effective control to its largest shareholder, Colombian billionaire Jaime Gilinski Bacal, who provided the bank with a £102m cash injection and saw his stake soar from just over 9 per cent to 53 per cent. hundred.
At the time, the bank promised to push ahead with plans to open more bank branches despite agreeing to cut costs by £30m a year as a condition of the funding deal.
UBS posts first loss in almost six years
UBS racked up its first loss in almost six years as the cost of its shotgun wedding to Credit Suisse took its toll.
The Swiss bank rescued its ailing rival this year as panic gripped the global banking system at the most dangerous time for the industry since the 2008 crisis.
The cost of integrating Credit Suisse after the deal led UBS to a £640m loss in the third quarter – its first loss since 2017 and bigger than the £360m forecast by analysts.
But investors hope the deal will be a boon in the long term, as UBS cements its position as a global wealth management powerhouse.