Metro Bank planning to raise £45m of new capital

New high street lender Metro Bank plans to raise £45 million in fresh capital to enable it to accelerate its expansion plans, it was reported yesterday.

The group, which was the first high street bank to launch in the UK for more than 100 years, is understood to be looking to its original investors for the money.

Metro promised to revolutionise the British banking experience when it opened its first branch in Holborn in London in July - offering retail opening hours and a simple range of products.

It has since opened a further three branches, which it refers to as stores, with the latest in Borehamwood in Hertfordshire opening its doors to customers on Friday. The group originally aimed to have 40 branches by 2014, increasing the number to 200-plus - all within the M25 - by 2020. But it is thought that it now hopes to accelerate these plans.

Some of the new money raised is also likely to be used to reassure City regulator the Financial Services Authority that it has sufficient capital to back its growth plans.