Last week, it said deposit flows “have returned to more normal ranges.” Still, the financing agreement has given the lender some much-needed breathing space. A sterling-denominated Metro note maturing in October 2025 is currently yielding over 20%, according to prices compiled by Bloomberg. The London-based bank is facing a challenging fundraising environment, especially after the October rescue imposed a 40% haircut on some bondholders.
The rates are among the highest in the UK. The lender also raised its rate for one-year fixed savings accounts to 5.91% from 5.21%. The challenger bank is offering a variable rate of 5.22% on new instant-access deposits for a limited period of 12 months, up from the standard 1.65%. (Bloomberg) - Metro Bank Holdings Plc more than tripled the interest rate it’s paying on customer deposits, boosting efforts to attract funds roughly a month after a £925 million ($1.2 billion) rescue deal.
