Metro Bank and the Curious Case of Banking Valuations

Or: how to flog a once-flailing bank with a fresh narrative and a dash of interest rate fairy dust.

Just over a year ago, Metro Bank looked about as lively as Brighton pier a rainy bank holiday.  Its shares were worth about as much as a Freddo, its bonds were looking peaky, and it was rapidly running out of cash, credibility, and options. Enter Pollen Street Capital – private equity with a node for distressed assets and a chequebook to match – and suddenly, Metro’s fortunes turned. The stock has since quadrupled, and investors seem to believe that Metro’s gone from write-off to one-to-watch.

But don’t be fooled. This isn’t just a feel-good comeback of a one-time high street darling. It’s a front-row seat into how investors are re-learning to value banks in a world where money – shock horror – costs something again.