| 17.2°C Dublin

Sharpe Shooter: Bank of Ireland's UK chairman to head board of Metro Bank

Close

Metro Bank was set up a decade ago to challenge the dominance of Lloyds and Royal Bank of Scotland, but investor faith in its costly business model has all but evaporated

Metro Bank was set up a decade ago to challenge the dominance of Lloyds and Royal Bank of Scotland, but investor faith in its costly business model has all but evaporated

Bloomberg

Metro Bank was set up a decade ago to challenge the dominance of Lloyds and Royal Bank of Scotland, but investor faith in its costly business model has all but evaporated

The chairman of Bank of Ireland's UK business, Robert Sharpe, has been appointed to chair Metro Bank.

He will succeed Metro Bank co-founder Vernon Hill, who resigned from the bank last year after an accounting scandal. Mr Sharpe will relinquish his role at Bank of Ireland "in due course", according to Metro Bank.

Mr Sharpe is expected to assume the chairmanship at London-based Metro Bank on November 1.

"As we navigate the new economic environment caused by Covid-19, community banking has never been more important as people, businesses and communities adapt to this new normal," said Mr Sharpe. "It is this community banking model that sets Metro Bank apart and will enable us to continue to grow." 

Metro Bank posted a £131m (€145m) loss last year and scaled back growth plans, capping a year dominated by an accounting scandal that forced its senior executives to quit.

Metro Bank was set up a decade ago to challenge the dominance of Lloyds and Royal Bank of Scotland, but investor faith in its costly business model has all but evaporated.

Its deposits fell by 8pc to £14.5bn (€16bn) in 2019. An increase in cash from retail customers failed to offset almost £2.5bn of withdrawals by business customers spooked by the accounting blunder that wiped nearly 90pc off Metro's market value last year.

Additional reporting: Reuters

Irish Independent