Several publications reported that the challenger bank was in talks with investors to raise the money after the regulator delayed its approval to allow Metro to use its internal risk model for residential mortgages.
The advanced internal rating-based (AIRB) approval from the Prudential Regulation Authority (PRA) would allow the bank to lower the capital required for mortgage lending.
The Financial Times reported that the bank was looking to raise £250m in equity funding and £350m in debt.
Metro said it noted the “recent press speculation” and following the update on the regulator’s decision continued to “consider best how to enhance its capital resources, with particular regard to the £350m senior non-preferred notes due in October 2025”.
It said it continued to meet its minimum regulatory capital requirements.
The statement added: “The company is evaluating the merits of a range of options, including a combination of equity issuance, debt issuance and/or refinancing and asset sales. No decision has been made on whether to proceed with any of these options.
“For three consecutive quarters ended 30 June 2023, the bank has been profitable on an underlying basis, and it expects the Q3 trading update to show continued momentum in personal and business current account growth and customer acquisition, in line with expectations. Metro Bank continues to be well positioned for future growth.”
