Metro Bank gets £387.5m expansion boost

Metro Bank was launched in July 2010 (epa)

Metro Bank has received a boost to its expansion plans as it bids to shake up high street lending after raising £387.5m from investors.

The bank, which opened its 25th branch - in Milton Keynes - on Friday, plans to open up to 12 new sites during 2014, creating an additional 500 jobs.

Expansion of the business, which was launched in July 2010, remains focused on London and the South-east.

Its announcement comes as Labour presses for greater competition to break up the dominance of the UK's big five banks.

Bank founder and chairman Vernon Hill said: “The revolution in British banking continues, with strong investor support from existing and new investors, who believe in the Metro Bank growth model.”

Metro said it was its fourth capital raising, bringing the total to £641m, and that the money would be used to support the expansion of its retail, commercial and private banking business.

Institutional and private investors worldwide had supported the offerings, it said.

The bank, which says it offers better levels of service and convenience including seven day a week branch banking, now has 280,000 business and personal customer accounts.

PA