The cost reduction plan is expected to be completed during the first quarter of 2024 with a £10-15 million one-off restructuring charge.

The notice explains the bank ‘….remains committed to stores and the high street…’ with a  transition to a more cost-efficient business model, investing in automation for service and back-office operations and improving digital channels, particularly for deposits.

One of the bank’s USPs was its seven-day opening times and extended store hours – these policies are now in review.

The notice says Metro Bank will also take action to simplify its operations and selectively streamline lending to focus on relationship banking and maximise risk-adjusted returns on regulatory capital. These actions are expected to result in a 20% headcount reduction but will not impact areas of growth.

The company is reviewing seven day opening and extended store hours across the store network and is in discussions with the FCA about the customer implications of any such changes. It will continues to seek sites in the North of England for new stores.

Daniel Frumkin, CEO at Metro Bank, said: “The support shown from our investors through this transaction will allow Metro Bank to accelerate its growth plans, with the new capital allowing us to unlock the potential in the business and deliver sustainable profitable returns as we strive to be the number one community bank.

“We remain committed to stores and the high street but will transition to a more cost-efficient business model while remaining focussed on customer service. These actions alongside other initiatives to reduce costs are expected to deliver savings of up to £50 million per year on an annualised basis.”

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