Signage is seen outside of a Metro Bank in London, Britain, May 22, 2019. REUTERS/Hannah McKay/File Photo Acquire Licensing Rights
LONDON, Nov 30 (Reuters) – Metro Bank (MTRO.L) on Thursday announced sweeping cost-cutting plans aimed at bolstering its finances, which could see the British lender lay off 20% of its staff and axe some of its biggest customer perks including seven-day opening hours.
Metro, which this week received shareholder approval for the equity portion of a 925 million pound refinancing and recapitalisation plan backed by Colombian billionaire Jaime Gilinski, said it expected the cost reduction plan to deliver up to 50 million pounds ($63.45 million) of savings a year.
The bank later on Thursday said it had completed the issuing of new bail-in debt, known as MREL, and its debt refinancing, bringing the transaction to a close.
Metro Bank’s shares were up 3.1% at 1555 GMT after this statement and the earlier publication of the cost-cutting plan, which is due to be completed in the first quarter of 2024.
The bank expects to take a lower-than-expected one-off restructuring charge of between 10 million and 15 million pounds in 2023.
Metro Bank did not immediately respond to a request for clarification on the precise number of jobs at risk. The lender employs around 4,000 people, according to its latest annual report.
Metro launched in 2010 to challenge the dominance of Britain’s big banks but hit a string of setbacks, such as accounting errors, leadership departures and delayed regulatory approval for key capital reliefs.
In addition to the jobs cull, the bank, famous for its extensive, centrally located branch network, said it would invest in automation for back-office operations and improving digital services.
It is also reviewing its seven-day opening and extended store hours and will “selectively streamline lending” to focus on