Metro Bank raises £126 million to fund further expansion

Metro Bank, the revolutionary customer- focused high street bank, confirms a third round of growth capital. The £126 million growth capital raised will directly support the bank's rapid expansion plan of store openings. This growth capital raising has made Metro Bank one of the strongest capitalised banks in the world. The investment has come from new and existing institutional and personal investors.

Metro Bank launched on July 29, 2010 and since then has grown at a rapid rate ahead of plan, both in terms of store and customer numbers. Metro Bank has over 80,000 personal and business accounts. Metro Bank's successful engagement with London businesses means that business lending currently makes up over half of Metro Bank's lending activity.

Metro Bank currently has 12 stores in the Greater London area, most recently successfully launching in Chiswick. By the end of 2012 Metro Bank expects to have 700 employees, and to have opened seven additional stores across London and the Home Counties including Brighton, Reading, Hemel Hempstead, Romford, Staines and Epsom. The Bank plans to grow to 200 stores in the Greater London area by 2020.

Craig Donaldson, Chief Executive of Metro Bank, comments: "We are pleased that our new and existing shareholders continue to support the revolution in British banking. The capital raise will further strengthen our growth plans and build on our firm foundation. The demand for this share placement reflects Metro Bank's unprecedented success in the market. We have ambitious expansion plans, and customer reaction to the Metro Bank model means that we are confident in achieving our ambitions.

"Londoners are flocking to us to open accounts and we've been blown away by local reaction to our style of community banking. In particular, our strong lending book is a direct result of our model of local bankers making local loans, providing unparalleled personal service. It really is a case of loving your bank at last."

Metro Bank has been advised during the capital raise activity by RBC Capital Markets, Barclays and Meredith Whitney Securities LLC. In the past year, Metro Bank has further strengthened its Non - executive board through the appointments of Luke Johnson and James Reuben.