Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Metro Bank to Cut 1,000 Jobs and cancels seven day branch openings

by March 13, 2024
March 13, 2024
Metro Bank to Cut 1,000 Jobs and cancels seven day branch openings

Metro Bank has announced plans to slash 1,000 jobs and discontinue its iconic seven-day branch model, as part of an extensive cost-saving initiative, following a significant expansion of its cost-cutting strategy post-autumn rescue deal.

The bank revealed on Wednesday that it has enlarged its original £30 million cost-saving plan, initially announced in October, to £50 million. This increase comes after surpassing its target of axing around 200 more staff and now aims to achieve an additional £30 million in cost reductions by year-end, bringing the total savings to £80 million.

Daniel Frumkin, the CEO of Metro Bank, indicated that the bank is contemplating further job cuts, having already streamlined costs by £44 million through a workforce reduction of 22%. Additionally, Metro Bank will be scaling back its seven-day branch opening model across its 76 branches starting April. This includes the cessation of Sunday operations, reduction of daily hours in some branches, and transitioning some to five-day-a-week opening.

Frumkin stated, “Based on our analysis, we will still maintain longer opening hours than our competitors on the high street, aligning them with actual customer activity.”

These extensive changes come on the heels of Metro Bank securing a £925 million rescue package in October, which involved substantial investment from Colombian billionaire Jaime Gilinski Bacal. This rescue package helped Metro Bank avert potential breakup or takeover amid regulatory challenges.

Benjamin Toms, an analyst at RBC Capital Markets, emphasised the significance of execution in Metro Bank’s restructuring efforts, noting that the refinancing package has provided management with valuable time to reshape the bank.

Metro Bank reported a pre-tax profit of £30.5 million for 2023, marking its first statutory pre-tax profit since 2018, a notable turnaround from the £70.7 million loss reported a year earlier.

While Metro Bank refrained from disclosing specific figures regarding customer withdrawals during the autumn crisis, the bank embarked on a campaign to attract fresh deposits, offering competitive savings rates. However, the success of this campaign resulted in unexpected costs, prompting Metro Bank to aim for a reduction in its deposit base in 2024.

Despite the positive financial results, Metro Bank executives acknowledged the challenges ahead, anticipating economic headwinds and increased competition among lenders, which could impact revenue and profitability.

Nevertheless, Metro Bank remains committed to its strategy of focusing on lending to businesses, particularly SMEs, which it views as a growth opportunity. Frumkin highlighted the bank’s agility in adapting to changing priorities, exemplified by a significant increase in business loans approved in the early part of the year.

Metro Bank intends to continue expanding its branch network, particularly in SME-centric locations, underscoring its commitment to being a leading community bank.

Following the announcement, Metro Bank shares experienced slight fluctuations, initially rising before trading lower by mid-morning.

Read more:
Metro Bank to Cut 1,000 Jobs and cancels seven day branch openings

0
FacebookTwitterGoogle +Pinterest
previous post
Biden warned about ‘meddling’ in Israeli politics after intel report says Netanyahu’s leadership ‘in jeopardy’
next post
Chancellor’s ‘generous’ National Insurance cut will increase tax for millions

You may also like

Women in their fifties face £7,000 pay gap

December 5, 2022

Business leaders’ priorities have to change and employees...

October 10, 2023

Business tycoon, John Caudwell, withdraws support for Sunak...

September 24, 2023

The Cycling Boom: The Summer Cycling Holidays Of...

August 3, 2023

British companies are failing to keep up with...

November 4, 2022

UK salaries rise at fastest rate in three...

November 26, 2024

Fuel Ventures and Oxford Capital join forces with...

January 23, 2025

PayPal plans to lay off 2,000 staff

February 1, 2023

US Postal Service restarts China deliveries as Trump...

February 6, 2025

Liverpool hotels cancel Eurovision bookings as rates hit...

October 10, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved