Metro Bank has disclosed that it failed to have enough capital backing some commercial loans because of an accounting error, sending shares in the upstart challenger to Britain’s big high street lenders to their worst one-day loss.
The bank, which has expanded rapidly to 66 branches since launching in 2010, also issued a profit warning, saying its full-year profits and capital levels would be weaker than expected after a “soft” end to the year.
Metro Bank’s shares fell almost 39% in London.
Meanwhile, Santander plans to close 140 branches and make more than 800 staff redundant because more of its customers are switching to smartphone apps to conduct their banking.
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