Metro Bank has reached a deal to raise extra funds from investors after last week announcing it was seeking new funding.

Shares in the bank had slumped last week after numerous reports suggested it needed to raise cash to shore up its future.

However, several outlets including BBC News have today reported that Metro Bank has raised a total £325m in new funding, as well as refinanced £600m worth of debt.

Metro Bank’s shares have climbed by approximately 10% in response today, taking its share price to about 50p – a level close to where it had been last week before reports on the group’s financial position emerged.

As part of the new deal, the Colombian billionaire, Jaime Gilinski Bacal, will become Metro Bank’s biggest shareholder with a 52% stake, and his firm, Spaldy Investments, will put £102m into the group.

Head of money and markets at Hargreaves Lansdown, Susannah Streeter, commented: “Metro Bank’s colourful facade is set to stay a feature of UK high streets now that it’s struck a deal with investors to shore up its finances. It needed to refinance a large loan by October 2025, and now its secured £325m in funding and has refinanced £600m in debt.

“Management is calling this a new chapter for the bank, but more developments are expected to trim down its loan book and put it on a firmer footing. It’s still in discussions about selling a big chunk of its mortgage book. This overall deal should help ensure the challenger bank can still expand, to widen its customer base with currently numbers 2.7 million.

“The costs of running its branch network, which offers much more extensive opening times and services compared to its rivals are high, and there is likely to be a significant amount of tinkering ahead to ensure the bank can stay profitable.”

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