Metro Bank to replace chairman as profits plunge

Embattled Metro Bank said it would be replacing chairman Vernon Hill as interim pre-tax profits plunged after customers withdrew £2bn in deposits.

The High Street challenger, which set up during the 2008 financial crash caused by major banks, reported pre-tax profits of £3.4m, s sharp fall from £20.8m a year earlier.

Total deposits were £13.7bn, in line with the previous year, but after the £2bn in withdrawals as customers were shaken by an accounting error at the bank that required an emergency £375m capital raising.

Metro said the withdrawals were caused by “intense speculation” at the time of the capital raising and “primarily driven by a limited number of commercial customers withdrawing deposits”.

It added that underlying profitability for 2019 would reflect "income pressure" from the sale of treasury assets, the planned sale of its mortgage portfolio and deposit gathering initiatives during the first half of the year.