According to reports, Metro Bank is one of a few lenders considering bidding for Aldermore Bank, which was sold by its parent company FirstRand in April.
South African lender FirstRand put the specialist lender up for sale after it said the Financial Conduct Authority’s (FCA’s) motor finance compensation scheme was “disproportionate and unfair” and would harm its finances.
FirstRand said Aldermore was “resilient” and “sustainable”, but it did not believe owning a UK consumer finance entity was within its risk appetite.
Sky News reported that Metro Bank was in the early stages of deciding whether to make a formal offer for Aldermore, adding that Shawbrook Group and Lloyds Banking Group were also considering offers.
Since selling its residential loan book to NatWest in 2024, Metro Bank has focused on the specialist lending market, aiming to become the “specialist lender of choice”.
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Its strategy saw the bank complete a record £2bn in commercial lending in 2025, and turn its 2024 loss into a profit of £98.1m, a high for the lender.
Metro Bank and Aldermore both declined to comment.
