- Jaime Gilinski Bacal will become a non-executive director of Metro Bank
- In October, Gilinski become Metro Bank’s controlling shareholder
- Metro Bank shares have sunk over 70% in the last year, but rose on Wednesday
Appointment: Billionaire Jaime Gilinski Bacal has been appointed as a non-executive director at Metro Bank
Metro Bank shares rose on Wednesday after billionaire investor and turnaround specialist Jaime Gilinski Bacal was appointed as a non-executive director at the bank.
Colombian Gilinski become Metro Bank’s controlling shareholder in October, growing his stake in the lender from 9 to 52.88 per cent, having invested £102million into the group.
Amid intense speculation over its financial position, Metro Bank struck a deal to boost its coffers and secure its future. Over 90 per cent of the bank’s investors voted to approve the package at a meeting in November.
In October, Metro Bank said it had raised £325million in fresh funding, and refinanced £600million worth of debt.
After revealing Gilinski’s appointment as a non-executive director on Wednesday, the lender’s share price jumped by 3.39 per cent or 1.23p to 37.43p, having plummeted over 70 per cent in the last year.
Gilinski’s appointment will become effective ‘once the necessary formalities are completed’, Metro Bank said.
Gilinski has a 52.88 per cent shareholding in Metro Bank through his Spaldy Investments Limited vehicle. Spaldy Investments and Gilinski are entitled to appoint up to three directors to the bank’s board of directors, Metro Bank said.
Gilinski said: ‘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.’
Share slump: Metro Bank shares have fallen over 70% in the last year
Robert Sharpe, chair of Metro Bank, said: ‘Jaime’s appointment underscores the commitment he has long shown to the bank as a supportive, long-term shareholder.
‘He brings decades of banking expertise and experience which will prove invaluable on the next stage of the bank’s journey.’
Gilinski’s other investments include controlling interests in Banco GNB Sudameris, Banco GNB Peru, Banco GNB Paraguay and Lulo Bank, and ‘significant shareholdings’ in Grupo Sura S.A. and Grupo Nutresa S.A.
Gilinksi is based in London and built his estimated £4.2billion fortune through banking and property.
He previously snapped up the Colombian assets of the Bank of Credit and Commerce International after it collapsed in 1991 and sold them for four times more a few years later.
While many banks have been shutting branches and shifting to online banking, Metro Bank continues to focus heavily on bricks and mortar.
In October, Metro Bank’s chief executive, Dan Frumkin, vowed to protect the group’s branch network, while launching a multi-million pound cost-cutting drive.
At the time, the bank said it planned to open more branches. Frumkin said the bank would plough ahead with plans to open 11 new branches in the next two years.
When the lender first opened in 2010 it positioned itself as a challenger bank and vowed to revitalise UK high streets with bank branches open seven days a week.
In November, Metro Bank announced sweeping cost-cutting plans, which could see it axe 20 per cent of its 4,000-strong workforce and potentially reduce customer perks including seven-day opening hours. Over 800 jobs were expected to be lost by March.
