UK highstreet challenger bank Metro Bank has this morning rushed to quash ‘false rumours’ on instant messaging platform WhatsApp concerning its ‘financial health’.
During the weekend, rumours circled around the West London area, that Metro Bank faced imminent collapse, leading to a number of customers seeking to withdraw funds from their current and savings accounts.
2019 has seen the challenger bank embedded in turmoil, related to the firm’s auditing procedures, which saw the bank incorrectly classify nearly £1 billion of ‘risk-weighted assets’ on the firm’s loan portfolio – valued at £14 billion.
The costly mistakes have seen investors wipe-off circa £900 million off Metro Banks’ corporate value, as the firm’s shareprice collapsed to from £40 to £5 and change in the past year.
This morning, Metro Bank has communicated the following update: “We’re aware there were increased queries in some stores about safe deposit boxes following false rumours about Metro Bank on social media and messaging apps.
“There is no truth to these rumours and we want to reassure our customers that there is no reason to be concerned.
“We’re a profitable bank, rated No 1 for personal current account service by the CMA and committed to serving our 1.7 million customer accounts.”
Further trouble for Metro Bank, saw independent shareholder advisory ISS issue a guidance to corporate investors, instructing them to reject the firm’s 2018/2019 executive remuneration report.
In its report, ISS branded “serious concerns around the effectiveness of the group audit” and recommended a further abstention on the re-appointment of executives and auditors.