Metro Bank chief executive Craig Donaldson has remained defiant despite shares plunging a further 26 per cent following its emergency £350m cash call.
Donaldson implored shareholders to focus on the challenger bank’s growth and look beyond the mounting problems it faced, which now includes regulatory probes into an accounting error.
But investors continued to lose confidence in the bank yesterday and its shares have now lost more than 55 per cent of their value since error was reported at the end of January.
Donaldson said: “Obviously I’m disappointed but we don’t control the markets.
“What we do control is the business, which continues to grow and was recently named the number one by the Competition and Markets Authority for personal banking.”
The £900m mishap was first admitted last month by Metro Bank, which said a swathe of commercial loans had been incorrectly classified and should have been among its “risk-weighted assets”,
leading to the worst one-day fall for a British bank since the financial crisis.
It then emerged that the error was first spotted by the Prudential Regulation Authority (PRA), compounding investors’ fears.
Donaldson said he “deeply regrets” what happened and described it as a “chastening experience” but vowed to continue leading the bank.
Investors were left stunned on Tuesday when the bank announced a plan to tap up shareholders for a further £350m following an accounting error last month.
Metro Bank made the announcement at 4.24pm and shares plummeted 15 per cent in the minutes that followed, before it then revealed its full year results.
But Donaldson told City A.M. the move was to benefit US shareholders, insisting it was always the plan to announce the results a 5.30pm.
Last week Metro Bank was awarded £120m from an RBS fund designed to boost competition in the business banking sector.
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Despite concerns from rivals Donaldson said there was no reason to believe this was in danger.
The chief executive also said he offered to resign in the wake of the accounting blunder last month but that the board fully supported him to lead the organisation.