Business
Update on Cost Reduction Plan and Completion ...
Update on Cost Reduction Plan and Completion ....
About this update from Metro Bank Holdings Plc
[{"type":"text","content":"\n \n \n \n\n\t\n\n\n\n\n\n\n\n\n\n\n\nMetro Bank Holdings PLC (MTRO)\n\n\n\n\n\n\nUpdate on Cost Reduction Plan and Completion of the Firm Placing 30-Nov-2023 / 07:00 GMT/BST\n\n\n Metro Bank Holdings PLC (LSE: MTRO LN)\n\n30 November 2023\n\n \n\n \n\nMetro Bank Holdings PLC\n\n \n\nLegal Entity Identifier: 984500CDDEAD6C2EDQ64\n\n \n\nNOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.\n\n \n\nTHIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES IN METRO BANK HOLDINGS PLC OR ANY OTHER ENTITY IN ANY JURISDICTION.\n\n \n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK VERSION OF REGULATION (EU) NO. 596/2014 ON MARKET ABUSE, AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.\n\n \n\n \n\nUpdate on Cost Reduction Plan and Completion of the Firm Placing\n\n \n\n \n\n£50 million Cost Reduction Plan \n\n \n\nOn 8 October 2023, Metro Bank Holdings PLC (“Metro Bank” or the “Company”) announced a cost reduction plan to be launched in the fourth quarter of 2023 which was expected to deliver cost savings of at least £30 million per year (with 75% of such cost savings being realised in 2024 and all cost savings being realised from 2025 onwards). After further evaluation of the cost base, Metro Bank has now identified potential cost savings of up to £50 million per year. Implementation of the cost reduction plan is expected to complete during the first quarter of 2024 and a £10-15 million one-off restructuring charge is expected in 2023, which is lower than previously anticipated. \n\n \n\nWhilst the Company remains committed to stores and the high street, it will transition to a more cost-efficient business model, investing in automation for service and back-office operations and improving digital channels, particularly for deposits. The Company is reviewing seven ...