Metro Bank's new billionaire owner has appointed himself to the board

24 January 2024 , 12:56

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Colombian billionaire Jaime Gilinski Bacal has joined the board of Metro Bank (Image: PA Wire/PA Images)

Colombian billionaire Jaime Gilinski Bacal, who recently led a rescue deal for Metro Bank, has now joined the bank's board.

He will serve as a non-executive director and help oversee the running of the business. Mr Gilinski Bacal invested about £100 million into the bank through his firm Spaldy Investments, which increased its stake in the bank from 9% to nearly 53%. This means he is now a controlling shareholder.

Metro Bank had been struggling with debts and concerns over its finances, but announced in October that it had secured a funding package worth £925 million. The bank said this "proves there is a place" for its branches, or "stores", in towns and cities.

Jaime Gilinski Bacal, one of Latin America's richest men with an estimated worth of about 5.4 billion US dollars (£4.2 billion), is based primarily in London. He has long-term investments in banks in Latin America, Spain and the UK, and is known for his strategy of buying into struggling lenders and turning them around.

Robert Sharpe, the chairman of Metro Bank, has praised the appointment of Mr Gilinski Bacal, stating: "He brings decades of banking expertise and experience, which will prove invaluable in the next stage of the bank's journey. Jaime's appointment underscores the commitment he has long shown to the bank as a supportive, long-term shareholder,"

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Mr Gilinski Bacal expressed his excitement about his new role, saying: "There are many opportunities for Metro Bank to grow, and I am looking forward to playing a part in the evolution of the bank as we build on the solid foundational work undertaken to date. A customer-centric physical presence complemented by digital capabilities remains a unique offering and sets Metro Bank apart."

In November, Metro Bank announced it was cutting about a fifth of its workforce to save around £50 million a year. The bank, known for its community-based model, is also considering whether to stay open seven days a week to be more "cost-efficient" while keeping its high street presence. Currently, it opens from 8.30am until 5pm Monday to Saturday and 11am to 5pm on Sunday.

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Lawrence Matheson