Metro Bank hunts for credit card deal

METRO Bank is on the hunt for a deal in the credit card market after eyeing up Sainsbury’s card business.

The challenger bank is understood to have looked at the Sainsbury’s Bank credit card book last year when the lender was up for sale.

With mortgage lending margins being squeezed, Metro chief executive Dan Frumkin is aiming to grow its unsecured lending and specialist loans portfolio to boost profits.

Metro Bank bought Ratesetter, a specialist site, in 2020 so it has the technology to push into these areas of lending. The bank will report its annual results on Wednesday and analysts expect Frumkin to discuss growing in the unsecured lending market.

Metro’s chief finance officer, David Arden, stepped down suddenly last week. He was in the role when Metro made an accounting mistake which led to an emergency £375 million capital raise.

Last year, private equity firm Carlyle held early stage talks about acquiring Metro, before withdrawing in November.

Metro Bank said: ‘We do not comment on rumour or speculation.’