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Metro Bank boss to stand down after bruising year

by ace
Metro Bank

The head of Metro Bank will resign after a decade in office after a turbulent year for the lender.

Chief Executive Craig Donaldson will step down at the end of 2019, although he is expected to remain a board advisor until the end of next year.

Until a successor is found, the top job will be held by director of transformation Dan Frumkin, who has only recently joined the bank.

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Craig Donaldson should remain a consultant until the end of next year

Donaldson's imminent departure comes after Metro Bank founder and chairman Vernon Hill gave up in October after months of investor pressure.

Metro Bank shares have collapsed since early 2019, when it revealed a £ 900 million accounting error.

His troubles were added after he was forced to abandon a bonus offer initially planned to raise £ 250 million.

The group relaunched its fundraising plans in early October, seeking to raise £ 300 million, which rose to around £ 475 million with strong investor demand.

However, since then, the group has revealed that it had suffered a loss of £ 2.2 million in the third quarter, with profits of £ 15.1 million a year earlier.

Donaldson said: "I am proud of Metro Bank's achievements over the last decade.

"From the beginning, we brought something very different to the banking industry for clients and colleagues.

"Although this was undoubtedly a challenging year, it was a privilege to serve."

Metro Bank founder Vernon Hill formerly established Commerce Bank in the United States in the 1970s.
Image:
Metro Bank founder Vernon Hill fell in October under pressure from investors

Sir Michael Snyder, president of Metro Bank, paid tribute to Donaldson and said his priority is to appoint a permanent chief executive and new non-executive directors "who will bring even more retail banking experience."

Donaldson will receive his salary, pensions and benefits during the notice period of his year, but has waived any potential bonus for 2018 and will not receive payments in 2019 or 2020.

Frumkin, 55, will receive £ 690,000 a year as interim executive director.

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