Metro Bank Capital Update

RNS Number : 1424J

Metro Bank PLC

09 December 2022

 

                                                                                                    Metro Bank PLC (LSE: MTRO LN)

9^th December

Metro Bank PLC ("Metro Bank")

Legal Entity Identifier: 213800X5WU57YL9GPK89

Capital Update

Metro Bank (the "Company") today announces that upon implementation of a holding company, the Bank of England's Resolution Directorate has agreed to provide a temporary, time-limited, adjustment for the Company's existing £250 million 5.5% Tier 2 Notes (the "Notes") with respect to minimum requirement for own funds and eligible liabilities ("MREL") eligibility until 26 June 2025.

The adjustment permits the Notes to remain eligible to count towards the holding company's MREL requirement until 26 June 2025, whilst remaining at the operating company. The holding company, required to be established by 26 June 2023, is progressing well and will become the new resolution entity post-implementation.

The adjustment has been granted in line with the statement in the Bank of England's December 2021 MREL Policy Statement that it may, on a firm's request, make 'temporary, time-limited adjustments' to the implementation of its policy change on MREL debt eligibility with respect to individual firms where to do so would not materially affect the overall amount of loss absorbing and recapitalisation capacity available in resolution.

The Notes have a one-time call date of 26 June 2023 and, given the adjustment, at present Metro Bank does not expect to exercise the call provision (unless it would be economically rational to do so at the time and subject to Prudential Regulation Authority approval). The Notes' eligibility for Tier 2 capital amortises from the call date over the remaining life of the instrument if not called.

Metro Bank will continue to optimise its balance sheet and review capital management actions.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (which forms part of UK law pursuant to the European Union (Withdrawal) Act 2018) and was authorised for release by Melissa Conway, Company Secretary.

ENDS

For more information, please contact:

Metro Bank PLC Investor Relations

Jo Roberts

[phone]

[e-mail]

Metro Bank PLC Media Relations

Mona Patel

[phone]

[e-mail]

Teneo

Charles Armitstead / Haya Herbert Burns

[phone] / [phone]

[e-mail]

About Metro Bank

Metro Bank services 2.6 million customer accounts and is celebrated for its exceptional customer experience. It is the highest rated high street bank for overall service quality for personal customers and the best bank for service in-store for personal and business customers, in the Competition and Market Authority's Service Quality Survey in August 2022. This year it has been awarded "Best Mortgage Provider of the Year" in 2022 MoneyAge Mortgage Awards, "Best Business Credit Card" in 2022 Moneynet Personal Finance Awards and "Best Current Account for Overseas Use" by Forbes 2022 and accredited as a top ten Most Loved Workplace 2022.  It was "Banking Brand of The Year" at the Moneynet Personal Finance Awards 2021 and received the Gold Award in the Armed Forces Covenant's Employer Recognition Scheme 2021.

The community bank offers retail, business, commercial and private banking services, and prides itself on giving customers the choice to bank however, whenever and wherever they choose, and supporting the customers and communities it serves. Whether that's through its network of 76 stores open seven days a week, 362 days a year; on the phone through its UK-based contact centres; or online through its internet banking or award-winning mobile app, the bank offers customers real choice.

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

It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. 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).

 

END

 

 

MSCEAFAPEANAFAA