In a strategic move to streamline operations and reduce costs, Metro (TSX:MRU) Bank Holdings Plc has announced plans to eliminate approximately 800 positions and overhaul its branch operation policies. The bank's new strategy is to focus more on high-yield corporate lending, a shift that aims to achieve annual savings of £50 million.
The decision comes on the heels of Metro Bank's efforts to stabilize its financial position, which includes a capital raise supported by shareholders and the acquisition of a significant stake by investor Jaime Gilinski. These measures were deemed necessary following the bank's challenges that arose from inaccurately reported risk-weighted assets in 2018.
Metro Bank also anticipates a one-off restructuring charge estimated between £10 million and £15 million for the year 2023. This charge is associated with the workforce reduction that is scheduled to commence in the first quarter of 2024. The bank's initiative to cut jobs and revamp branch operations is part of a broader effort to enhance efficiency and bolster its financial standing in the competitive banking landscape.
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