Metro Bank hires Dan Frumkin as permanent chief executive
High street lender Metro Bank has appointed interim boss Dan Frumkin as its permanent chief executive as the group looks to recover after a tough year.
The 55-year-old has been interim chief executive since January 1 after former boss Craig Donaldson stepped down in December amid falling profits and the fallout from an accounting blunder.
Mr Frumkin was previously Metro Bank’s chief transformation officer, having joined the group last September.
Before that, he spent eight years at The Bank of NT Butterfield & Son Limited – a community bank based in Bermuda – most recently as global chief operating officer.
He also previously held roles at Royal Bank of Scotland and Northern Rock.
Metro Bank chairman Sir Michael Snyder said: “The combination of three decades of experience across retail banking and the positive impact he has made since joining Metro Bank last year mean we have identified an impressive CEO to take Metro Bank into its second decade.”
Mr Frumkin said: “This is a business with robust foundations and real potential to shake up British banking.
“I am excited about the opportunity and look forward to updating the market on our plans on February 26.”
He will be paid an annual salary of £740,000, with potential bonuses worth up to £1.48 million on top.
His appointment comes ahead of the group’s full-year results on February 26, which are expected to show the impact of a difficult year.
Metro Bank’s shares have been decimated since the start of 2019 after it revealed a £900 million accounting mistake in January.
The bank’s troubles were compounded when it was forced to abandon a bond offer, initially planned to secure £250 million.
The group relaunched fundraising plans earlier in October, looking to achieve £300 million, which soared to around £475 million on strong demand from investors.
But since then, the group revealed it swung to a £2.2 million loss in the third quarter, from profits of £15.1 million a year earlier.
In the first nine months of 2019, its profits fell by 71%, compared with the same period a year earlier, to £11.3 million.