Metro Bank vows to protect branches as it launches £30m cost-cutting program

Colombian billionaire Jaime Gilinsky Bacal will take control of Metro Bank after eleventh-hour rescue deal

James Daly, founder of campaign group Fairer Finance said: «All banks are being forced to close branches as footfall declines and demand for face-to-face service declines.»

“I always thought it was pretty brave of Metro to buck the trend and make it an advantage to have a growing branch network. But it will never be sustainable in the long term.”

However, a source close to Metro played down concerns that the bank will have to close branches, adding that the bank will honor its commitment to open branches. 11 more branches in the coming years.

Opened in 2010 as the first new bank on the UK high street for more than a century, Metro was tasked with maintaining an extensive branch network while others closed or retreated.

His banks have coin counting machines, water bowls for dogs and safes, among other new items.

Mr Daly said: “The most important thing is that they get a permanently stable financial footing. I'd love to see them chop down branches and dog bowls if it helps them achieve long-term stability.»

Metro has launched a cost-cutting campaign after securing a £325m capital raise and £600m debt refinancing at the eleventh hour after a weekend of frantic negotiations to secure its future.

About the deal was announced late Sunday and was completed after it became public knowledge. that the Bank of England is looking for potential buyers for the embattled lender.

The heavily reduced fundraising will hurt Metro investors, while some bondholders face a 40% discount cut as part of the refinancing deal.

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Shares rose around 14% to 51.7 pence at early afternoon trading on Monday, and investors cheered the rescue deal, even if it meant a sharp write-down for shareholders.

Gary Greenwood, banking analyst at Shore Capital, said cost cuts would likely affect staff. «Personnel costs» make up about 45% of Metro's overall costs.

«It's hard to imagine that [the cost-cutting move] won't have some impact on employees.»

He said , which would be surprised if Metro started to cut branches, given how much the lender has invested in them and how important it considers them to its business.

Mr Greenwood added: “I assume that is also it will be expensive given the long-term leases they have signed.»

As well as the fundraising deal and cost-cutting plans, Metro continues to put up for sale a package of £3 billion mortgages.

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Mr. Frumkin told analysts: “If we don't sell it, I don't care, we'll just let it flow. It doesn't really matter to me, it's just the speed at which we can restructure the balance sheet that's attractive because we'd like to continue working on it.”

Metro Bank declined to comment.