Metro Bank Completes £50m Capital Offering

LONDON--(BUSINESS WIRE)--Metro Bank, the first High Street bank to launch for more than 100 years, today confirms that it has completed its second round of capital raising at a 20% premium to its original share price earlier this year. The bank, which opened only four months ago to much acclaim, has raised additional capital to finance the acceleration of its expansion plans. In 2011, the bank plans to increase the rate of store openings across Greater London, namely West London, Surrey and Kent.

“The completion of our second round of capital raising is as a result of our hugely successful launch and the opportunity to accelerate our roll out.”

Vernon Hill, Co-Founder and Vice Chairman of Metro Bank, comments: “The completion of our second round of capital raising is as a result of our hugely successful launch and the opportunity to accelerate our roll out.”

“We knew that retail and business customers were fed up and cynical about their banks and wanted a new way of banking, but even we underestimated the demand for a new type of banking experience – one where customers – new and existing – come first. It really is about loving your bank at last.”

The latest round of capital raising builds on the initial £75m raised to launch the bank in July, and will enable Metro Bank to increase its store roll out in the first 2 years, from 12 to at least 18 - a 50%+ increase in store openings.

The extra capital will also further enable Metro Bank’s business and commercial divisions to support more businesses through its range of lending products. This transformation in British business banking will be led by Mark Price, Commercial Banking Managing Director, and will see the Metro Bank business banking model provide local bankers making local loans, providing unparalleled personal service.

The historic launch of Metro Bank earlier this year began the transformation of British banking by adopting a retail store model offering unparalleled service and convenience. Open seven days a week from early to late, Metro Bank, like the great retailers, puts the customer at the heart of its proposition, serving the banking needs of the retail and business communities.

Metro Bank was co-founded by Vernon Hill and Anthony Thomson and is based on the successful Commerce Bank model that was established by Vernon Hill in the US in 1973.

Metro Bank offers retail and business customers:

7 day a week branch banking (8am-8pm Monday to Friday, 8am-6pm Saturday, 10am-4pm Sunday and bank holidays), 361 days of the year
A 24/7 customer call centre located in London
The ultimate in new account opening convenience, with a rapid opening procedure and on the spot bank cards and cheque books
Free coin counting at every store, for customers and non-customers alike
A friendly welcome to dogs and their owners, with water bowls and dog biscuits on hand for man’s best friend - dogs rule at Metro Bank!

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Notes to Editors

About Metro Bank
Metro Bank was co-founded by Vernon Hill and Anthony Thomson. It is based on the successful Commerce Bank model that was established by Vernon Hill in the US in 1973. A UK management team worked with Vernon Hill to help bring this model to the UK market.

Metro Bank operates retail hours, not banking hours. It will be open seven days a week (8am- 8pm Monday to Friday, 8am - 6pm Saturday, 11am - 4pm Sunday and bank holidays), every day of the year apart from Good Friday, Easter Sunday, Christmas Day and New Year’s Day.

Metro Bank PLC. Registered in England and Wales. Company number: 6419578. Registered office: One Southampton Row, London, WC1B 5HA. ‘Metrobank’ is the registered trade mark of Metro Bank PLC.

Metro Bank PLC is authorised and regulated by the Financial Services Authority (FSA)in relation to our acceptance of deposits and provision of investment and insurance services. In relation to our consumer credit business, Metro Bank PLC is licensed and regulated by the Office of Fair Trading and not by the FSA. Most relevant deposits are protected by the Financial Services Compensation Scheme. For further information about the Scheme refer to the FSCS website www.fscs.org.uk.

All Metro Bank products are subject to status and approval.

Metro Bank PLC is an independent UK bank - it is not affiliated with any other bank or organisation (including the METRO newspaper or its publishers) anywhere in the world. Please refer to Metro Bank using the full name.

Metro Bank is led by a talented team of UK Executives:

Craig Donaldson, Chief Executive Officer, formerly Managing Director of Retail Banking at Royal Bank of Scotland
Paul Marriott-Clarke, Managing Director, Retail Banking, formerly Managing Director, Network South, Retail, HBOS
Mark Price, Managing Director, Commercial Banking, formerly Managing Director, Commercial Banking South, Barclays
Aisling Kane, Chief Operations Officer, formerly Director of UK Operations at Anglo Irish Bank
Mike Brierley, Chief Financial Officer, formerly Director, Business Risk at Barclaycard
Mike Hudson, Chief Risk Officer, formerly Group Head of Risk at Hitachi Capital

Its non-executive directors are:

Stuart Bernau, former Retail Director, Nationwide Building Society
Keith Carby, Co-founder, J Rothschild Assurance
Howard Flight, Founder, Guinness Flight Asset Management. Howard Flight has been appointed a peerage and will join the House of Lords
Ben Gunn, former Chief Executive of Friends Provident Life & Pensions
Vernon Hill, Founder of Commerce Bank
Eugene Lockhart, former CEO of Midland Bank and MasterCard International and former President, Global Retail Banking at Bank of America
Anthony Thomson, Chairman, Financial Services Forum. Anthony Thomson is one of the Evening Standard’s London’s 1000 most influential people 2010