In a strategic move to streamline operations and reduce costs, Metro Bank Holdings Plc has announced plans to eliminate approximately 800 positions and overhaul its branch operation policies. The bank's new strategy is to focus more on high-yield corporate lending, a shift that aims to achieve annual savings of £50 million.
The decision comes on the heels of Metro Bank's efforts to stabilize its financial position, which includes a capital raise supported by shareholders and the acquisition of a significant stake by investor Jaime Gilinski. These measures were deemed necessary following the bank's challenges that arose from inaccurately reported risk-weighted assets in 2018.
Metro Bank also anticipates a one-off restructuring charge estimated between £10 million and £15 million for the year 2023. This charge is associated with the workforce reduction that is scheduled to commence in the first quarter of 2024. The bank's initiative to cut jobs and revamp branch operations is part of a broader effort to enhance efficiency and bolster its financial standing in the competitive banking landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
MTRO: is this perennial leader facing new challenges?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Sure, there are always opportunities in the stock market – but finding them feels more difficult now than a year ago. Unsure where to invest next? One of the best ways to discover new high-potential opportunities is to look at the top performing portfolios this year. ProPicks AI offers 6 model portfolios from Investing.com which identify the best stocks for investors to buy right now. For example, ProPicks AI found 9 overlooked stocks that jumped over 25% this year alone. The new stocks that made the monthly cut could yield enormous returns in the coming years. Is MTRO one of them?
Unlock ProPicks AI to find out