Metro Bank shares soared today after a vital cash call that was welcomed by regulators at the Bank of England.
Shares in the embattled lender jumped more than 15% in early trading after the bank raised £375m in a discounted funding round yesterday.
The Prudential Regulation Authority said the bank was "profitable and continues to have adequate capital and liquidity to serve its current customer base".
The nine-year-old challenger bank was forced to boost its capital levels after it admitted in January that it had underreported the risk of its loan book by nearly £1 billion.
Metro raised more than the £350m it had planned to raise, due to the placing being oversubscribed it said.
Investor and customer confidence in Metro had been shaken in recent months by corporate governance concerns and a tumbling stock price which slashed more than £1.5 billion off the bank's market value.
The lender was also hit by some customers pulling their money out since the problems emerged.
Metro Bank said yesterday that some customers pulled deposits between May 10 and May 13 after press speculation about the company's financial health, but said this position was "stabilising".
