Metro Bank Draws Up Plans to Sell £1 Billion of Its Loans

Metro Bank has drawn up plans to sell more than £1 billion (€1.15 billion) worth of loans at the centre of a misreporting scandal that caused its share price to plunge and forced it into a rights issue, The Irish Times reported. The move would be a significant reversal of strategy for the former darling of Britain’s challenger banks, which won admiration from investors for its rapid growth but changed its approach after the discovery of an embarrassing accounting error. At the start of this year, the upstart lender was found by regulators to have miscalculated its risk-weighted asset tally and over-reported its capital ratios as a result. Craig Donaldson, chief executive, told the Financial Times: “Two of our asset classes saw the risk-weighted assets held against them go up, therefore return on equity went down. One of the ways we could address that would be to securitise them or sell the book.” Read more