UK banking

Influential investor to vote against Metro Bank chair

metro bank logo
Getty Images

Back to Metro Bank, which announced earlier it had raised £375m from investors.

Legal & General Investment Management is to vote against Vernon Hill, the chairman of Metro Bank, at next week's annual general meeting.

Last year LGIM voted against Mr Hill and the remuneration report. It says it is taking the "rare step" of announcing how it intends to vote ahead of the AGM on 21 May.

It said it will vote not just against Mr Hill but also members of the audit committee and other directors.

"This announcement is being made to highlight and share these issues with other investors. Furthermore, there are continuing concerns following the recent announcements on accounting errors and the significant share price underperformance," LGIM said.

Sacha Sadan, director of corporate governance at LGIM, said: “As a long term investor of our clients’ assets, we hope that in sharing our voting intentions early, and that following the results of the AGM, this will help encourage Metro Bank to strengthen their governance structures.”

Metro Bank shares rise

metro bank

Relief, at last, for Metro Bank this morning after it announced it had raised £375m from investors.

The shares are up 18% at 634p - above the 500p at which the fundraising was priced.

But how does that compare with this time last year? Then the shares were trading at £34.

Bank of England says Metro can fund future growth

Metro bank branch sign

The Bank of England's regulatory arm, the Prudential Regulation Authority, regulates Metro Bank and a Bank spokesperson has responded to that announcement that the lender has raised £375m of fresh funding - more than the £350m initially planned.

“The Prudential Regulation Authority welcomes the steps taken today by Metro Bank. Metro Bank is profitable and continues to have adequate capital and liquidity to serve its current customer base. It has raised additional capital in order to fund future growth," the Bank of England spokesperson said.

Metro Bank raises £375m

Hill and his dog

Metro Bank announced it has managed to raise £375m from a share placing after aiming for £350m to bolster its finances.

The shares were priced at 500p.

Vernon Hill, chairman and founder, pictured with his dog Duffy, said he was "really pleased"

"The [share] placing was significantly oversubscribed and as a consequence we raised a total of £375m.

"Although we've faced challenges in the past few months, we remain fully focused on providing the outstanding service and convenience that our customers expect of us. This growth capital will enable us to continue to expand the business and implement our strategic initiatives," he said.

Those challenges? Read here about the accounting issues the bank has faced and the 75% fall in its share price this year.

Metro Bank seeks cash injection 'later this week'

The BBC's business editor tweets: