CITY WHISPERS: Fears for challengers as Bank North heads south

The demise of Bank North is raising concerns about the financial strength of other challenger banks as they contend with the cost-of-living crisis and a near meltdown in financial markets. 

Bank North had failed to raise enough cash to qualify for a full banking licence. 

Since 2013, the Bank of England has approved 54 new licences for banks including Monzo, Starling and Atom. 

Going south: Bank North had failed to raise enough cash to qualify for a full banking licence

A recent report from EY found revenue and profitability for challenger and specialist banks had risen last year while provisions for bad debts fell. 

It said banks remained well capitalised – meaning they had set aside sufficient reserves to deal with any downturn and to keep growing. 

But EY added: ‘The geopolitical and economic picture may create significant challenges ahead.’ 

Judging from the bombed-out share price of Metro Bank – one of the least capitalised banks EY surveyed – investors may already be factoring this in.

Braemar on ‘naughty’ list  

Shipping broker Braemar became the latest company to join the Investment Association’s naughty list after almost 29 per cent of investors rebelled against last year’s pay plan. 

The firm insists it will now ‘encourage an open and constructive dialogue directly with its shareholders’. 

Braemar joins a string of high profile names – including WH Smith, Ocado, Informa and housebuilder Berkeley – which have faced shareholder ire this year. 

Vote of confidence for The Style 

Online fashion group In The Style received a vote of confidence from serial investor Bill Currie last week. 

William Currie Investments took a 4.15 per cent stake in the company, whose shares have dived by more than 80 per cent this year. 

Currie is a former Barclays analyst who turned to investing and made his name as an early backer of future stars including Asos, Boohoo and THG. 

Former Tesco boss Sir Terry Leahy is also on Currie’s team. Currie’s support is likely to be welcomed by In The Style, which floated on AIM in March 2021. 

The company is known for its collaborations with influencers and TV personalities including Stacey Solomon, a former contestant on The X Factor. 

LSE links with China hit 

Efforts by the London Stock Exchange Group to forge links with China have been knocked after the Chinese state-owned oil group Sinopec announced plans to quit the bourse. 

Sinopec does not have a full listing on the LSE, but its stock can be traded on the exchange. 

However, Sinopec’s board has approved plans to delist these shares – known as ADSs – on November 1. 

It said this was due to low trading and administrative costs. 

But it comes as tensions mount between the UK and ChinBut it comes as tensions mount between the UK and China, with Chinese takeovers of British firms coming under scrutiny.

                                                                                                                            Contributor: Patrick Tooher 

This post first appeared on Dailymail.co.uk