The firm said that three quarters of the cost savings would be realized in 2024 and all cost savings would be made by 2025 onwards.
It noted that it planned to implement and complete the plan in the first quarter of next year, with a £10m to £15m one-off restructuring charge expected this year.
Metro Bank added that it had identified £50m in cost savings per year.
The firm said that while it “remains committed” to stores and the high street it would “transition to a more cost-efficient business model” by investing in automation and back-office operation and improve digital channels, especially for deposits.
The bank said it was reviewing its seven-day opening and extended hours across its network and was talking to the FCA about potential impact on customers of changes.
The company said that it was looking for sites in the North of England, and it would simplify operation and “selectively streamline lending” to focus on “relationship banking and maximise risk-adjusted returns on regulatory capital”.
All of the above actions, Metro Bank said, would lead to a 20 per cent reduction in headcount, but it said it “will not impact areas of growth”.
In its latest report, the firm said that its headcount was around 4,000 but the precise number of people involved in reduction.
Metro Bank said that strong foundations through its turnaround plan, renewed balance sheet strength and interest rate environment presented an opportunity to “deploy liquidity into higher yielding corporate and commercial lending utilising our risk-weighted capital more effectively while ensuring our proposition remains closely aligned to our customers’ needs”.
Metro: ‘Committed to stores and high street’
Daniel Frumkin, chief executive of 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 focused 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.”
Metro Bank also confirmed that Anne Grim, Ian Henderson and Monique Melis would step down from the board from 31 December.
