US Bank Beats Forecasts

28 November 2014 – Sunday Times

Metro Bank has smashed all its business plan forecasts after its first branch, in London’s Holborn, met its year one targets after just a month.

Britain’s newest high street bank is close to raising another £40m from investors, including the billionaire Reuben brothers, to accelerate its expansion. Metro Bank, founded by the colourful American entrepreneur Vernon Hill, has beaten all the forecasts in its business plan. Its first branch in London’s Holborn, which opened in July, met its year one targets after just a month.

The bank will now open eight branches in its first year, rather than four. It plans to open 10 to 12 in its second. All of the new branches — or stores, as the bank calls them — are in and around London. Craig Donaldson, Metro Bank’s chief executive, said: “Our success so far proves that British consumers wanted real competition in high street banking, particularly through much better service. “We’re talking to our investors about a capital raising, which should see us through to a planned stock market flotation some time in late 2012.”

Metro was set up with £75m of seed funding. Its other backers include the fund managers Fidelity and Wellington. Richard leFrak, the New York property developer, is also a large investor.