Metro Bank exploring £2bn merger with Aldermore - report
By Michele Maatouk
Date: Tuesday 21 Jul 2026
(Sharecast News) - Metro Bank is reportedly exploring a £2bn merger with Aldermore, which is up for sale after becoming embroiled in the motor finance mis-selling scandal.
According to Sky News, Metro is at the early stages of examining whether to make a formal offer for Aldermore, which specialises in mortgages and business lending. City sources told Sky on Tuesday that the high street lender was among a number of parties actively evaluating an offer, although it was not yet certain to submit one.
Aldermore's owner - South African lender FirstRand - announced in April that it was putting the business up for sale, having calculated that the car finance affair would cost it around £750m in compensation payouts. FirstRand bought Aldermore in 2017 for £1.1bn.
Sky has previously reported that Lloyds Banking Group was among the parties engaged in the sale process. Shawbrook Group and a number of other major UK banks might also make offers.
Sky said one challenge for Metro would be the consideration for any Aldermore offer. It could seek to raise fresh equity or finance it partly in stock, although FirstRand is not thought to be keen to strike a paper-based deal, it said.
Sky cited banking sources as saying that any buyer of Aldermore will need an indemnity against further compensation liabilities.
At 1355 BST, Metro Bank shares were up 2.2% at 174.28p.
Metro Bank declined to comment.
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