The United Kingdom-based Metro Bank has had a rough year. In an announcement on Wednesday, the bank declared the end of Chief Executive Craig Donaldson’s tenure at the end of 2019. The retail and commercial bank highlighted that the decision was made with the mutual consensus of the board and Donaldson has agreed to step down in a month.
Chief Transformation Officer, Dan Frumkin, To Act As Interim CEO
It was further added that Dan Frumkin, who currently holds the Chief Transformation Officer position at Metro Bank, will be temporarily promoted to act as an interim CEO as the bank looks for a suitable candidate to fill the position permanently. As per the bank, both internal and external candidates are being considered for the position. The interim CEO, in the meantime, will take over on January 1st, 2020.
Metro Bank recently announced its performance results for the third quarter that were reported to be largely below the expectations. The retail bank also saw its chairman’s (Vernon Hill) departure back in October (2 months earlier). Owing to the ongoing accounting scandal, the commercial bank had previously announced that moving forward, its growth plans may take a further hit.
Details Of The Accounting Scandal
The accounting error was disclosed earlier this year. As per the sources, the error largely under-reported the bank’s exposure to high-risk loans by as much as $1.28 billion. In his statement announcing his departure from the Metro Bank, CEO Craig Donaldson stated:
“While this has undoubtedly been a challenging year, it has been a privilege to serve. I committed to work with the Board until we felt that Bank was sufficiently strong for me to step away. This has been achieved”.
In an official statement, Metro Bank appreciated Donaldson’s service to the bank since 2009 as a Chief Executive Officer. The bank also highlighted that Donaldson helped steer the bank out of challenging times. Donaldson is expected to remain with the bank as an advisor to the board until January 1st, 2021.
The UK’s Metro Bank has come out as one of the worst-performing stocks in the stock market in 2019. Having started the year at 1,718 GBX, share prices were seen higher around 2,200 GBX by the end of January. The year-to-date high was almost immediately followed by an unstoppable streak of losses that pushed the stock as low as 175 GBX in September. With a minor retreat, share prices are currently settling around 181 GBX.