Metro Bank to raise £350m after WhatsApp rumour spooks customers

Ryan Bembridge

May 13, 2019

Metro Bank bbls

Metro Bank is looking to raise £350m after rumours emerged about its financial health over the weekend.

Sky News reported that the bank is raising £350m on Saturday, while Metro confirmed that it is “financial discussions” with shareholders and investors over its plans to raise cash. It said feedback continues to be positive on the development.

It also emerged over the weekend that warnings about the bank’s financial health circulated on West London community WhatsApp groups, resulting in customers lining up to withdraw their money and valuables from safety deposit boxes.

On the latter development, a Metro Bank spokeswoman said: “We’re aware there were increased queries in some stores over the weekend about safe deposit boxes following false rumours about Metro Bank on social media and messaging apps.

“There is no truth to these rumours and we want to reassure our customers that there is no reason to be concerned.”

Ownership of customers items held in safe deposit boxes remain customers’ property.

Metro had planned to raise capital since February, and there is no suggestion the news about the £350m capital raise is connected with customers being spooked by the WhatsApp rumour.

After an accounting error the bank’s shares have fallen by around 75% since January, while they fell by 7% in early trading today.

Sign up to our daily email