Metro Bank has put itself up for sale as part of a strategic review aimed at accelerating growth following several years of restructuring and financial challenges.

The bank said its board had unanimously agreed to begin a formal sale process (FSP), inviting expressions of interest from potential buyers for the entire issued and to be issued share capital. It added that it was currently not in active discussions with any potential bidders and had not received an approach or takeover offer.

Metro's decision to put itself up for sale marks the latest chapter in what has been a turbulent few years for the challenger lender.

Founded in 2010 by Vernon Hill, Metro was the first new high street bank to launch in the UK in more than a century and quickly built a reputation around branch banking, long opening hours and customer service. It listed on the stock market in 2016 at a valuation of £1.6bn.However, its growth story was derailed in 2019 after an accounting error relating to risk-weighted assets triggered a regulatory investigation, management upheaval and a fall in investor confidence.

Colombian billionaire businessman Jaime Gilinski Bacal became the bank’s majority shareholder when it collapsed in 2023, leaving him with a controlling stake of 53% in the business.

Daniel Frumkin, who took over as CEO in February 2020, has remained in charge throughout the turbulent period. More recently, the bank has returned to profitability, cut more than 1,000 jobs, and reduced costs.

"Metro Bank has successfully completed a substantial transformation over recent years and enters this next phase with strong operating momentum," it said. "The Board remains highly confident in Metro Bank’s standalone growth prospects and ability to deliver its guidance."

It added: "The significant progress made by Metro Bank means it is now well positioned to consider a broader range of strategic opportunities for its next phase of growth."

The bank reaffirmed its profitability ambitions, targeting a return on tangible equity (RoTE) of more than 13% in the fourth quarter of 2026, rising to more than 15% in 2027 and 18% in 2028.

Morgan Stanley has been appointed as the lead financial adviser, with the formal process allowing interested parties to explore a possible acquisition on a confidential basis. Potential bidders will be required to sign non-disclosure and standstill agreements before receiving further information about the business and being invited to submit proposals.

If the sale process fails to produce a transaction, Metro Bank said it would continue pursuing its existing strategy and deliver previously announced guidance.

Shares rose 5.7% to 188.80p in early trading.

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