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Metro Bank founder steps down early

Vernon Hill remains as a non-executive director until 31 December and will then be given an honorary title

Metro Bank - Metro Bank PLC’s founder steps down before year-end deadline
Michael Snyder will be interim chair until a permanent replacement is found

Metro Bank PLC (LON:MTRO) founder Vernon Hill is stepping down from his role as chairman with immediate effect, weeks ahead of the previously scheduled year-end deadline.

Hill, who set up the bank in 2010 with focus on customer service, remains as a non-executive director until 31 December and will then be appointed as emeritus chairman, an honorary title to recognise his “extraordinary contribution”, the company said in a statement.

READ: Metro Bank investors lap up bond issue and founder's exit

Board member Michael Snyder will be interim chairman until a permanent replacement is found.

The bank has been under fire after a massive accounting blunder at the start of the year, which forced it into a £350mln equity raise and sparked investigations by the Financial Conduct Authority and Prudential Regulatory Authority, with investors pressuring Hill to leave.

The news of Hill's early departure pepped the shares up 1% to 195.51p by noon on Wednesday, following a 20-fold tumble since all-time highs of over 4,000p in March 2018.

Earlier this month, the bank got some investors back on side as it got a £300mln bond away with 9.5% coupon, upping the amount to £350mln after the chunky interest rate attracted wide reception.

“The company may have raised funds at the second attempt to shore up its capital position earlier this month but it will be interesting to see if Hill’s departure leads to a change of approach for the business going forward,” said analysts at AJ Bell.

Quick facts: Metro Bank

Price: 207.4 GBX

LSE:MTRO
Market: LSE
Market Cap: £357.6 m
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