Metro Bank Share Discussion Threads

[littlepuppi7] 24/10/2019 07:50

It ain't spiking other than down.

[ammu12] 24/10/2019 07:47

Spike at opening and will end red imo.Let's see what happens.... Why is it still a loss making business with billions in the bank? Why was the results released after market closed ? They could have released at 7am just like any other normal business

[amaretto1] 24/10/2019 07:47

What ? It's up .. u Loon on CMC

[cool runnings] 24/10/2019 07:45

Called down 5%

[cool runnings] 24/10/2019 07:41

Called down 5%

[ammu12] 24/10/2019 07:27

I agree Kirk bug type recover lol

[dafad] 24/10/2019 07:25

I thought you were off out

[hazl] 24/10/2019 07:13

OUTLOOK


Margin trends experienced in Q3 2019 are expected to continue into Q4 2019, in addition to the cost of servicing the senior non-preferred debt. Deposit growth will moderate in Q4 as we strike the right balance between growth, cost of deposits and capital efficiency.

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Metro Bank is further evaluating future growth plans to maximise returns, including future expansion, cost initiatives and optimising capital efficiency.

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Our plans with regards to C&I commitments remain unchanged.

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The results of the evaluation process along with revised targets and KPIs will be communicated in conjunction with the full year results. In the intervening time the Bank will optimise capital, continue to progress with its cost efficiency programme and target further income diversification.

[midasx] 24/10/2019 07:08

Operational Update
 Developing C&I funded sites in SME hotspots including Liverpool and Manchester
to open in Q4 2019. Expanded store footprint to the Midlands.
 Launched artificial intelligence-led, in-app Business Insights tool to make
managing business finances easy, helping customers make more data-driven
decisions and manage their cash flows better.
 Signed a trio of fintech and SME partnerships with Funding Options, Conance and
DueDil, to enhance business banking offering for SMEs.
 Retained position as number one bank for overall quality of service for personal
current account customers and second for business current account customers in
Competition and Market Authority’s latest Service Quality Survey.
 Awarded five stars for personal current account and credit card in the
Moneyfacts annual star rating.

[kirk 6] 24/10/2019 07:05

Definitely better than expected, bug recovery due here

[midasx] 24/10/2019 07:03

Financial performance for the quarter ended 30 September 2019
Deposits
 Strong customer account growth of 106,000 in Q3 2019 (Q2 2019: 93,000)
bringing the total to 1.9 million, including continued growth in personal current
accounts and business current accounts.
 Deposit growth of £528 million in Q3 2019 supported by the conscious decision
to elevate the price of fixed term retail deposits during Q3. September saw net
deposit outflows of £213 million following the postponed senior non-preferred debt
issuance, but we are returning to business as usual.
 Cost of deposits was 84 bps in Q3 2019 (Q2 2019: 71 bps) and 75 bps in the
first nine months of 2019. Following the deposit pricing actions taken in Q2 and
Q3 2019, cost of deposits normalised to business as usual levels as the quarter
progressed and is expected to be marginally above current base rate of 75 bps for
full year 2019

[leoneobull] 24/10/2019 07:02

23 October 2019Metro Bank PLC (LSE: MTRO LN)Q3 Trading Update 2019Q3 Summary for 3 months ending 30 September 2019 -- Total deposits of GBP14.2 billion with Q3 growth of GBP528 million. -- Customer account growth of 106,000 in Q3 2019 (Q2 2019: 93,000) to 1.9 million. -- Total net loans of GBP14.9 billion broadly flat quarter-on-quarter, with the loan to deposit ratio reducing to 105% (H1 2019: 109%). -- Modest quarter-on-quarter reduction in operating costs and continued growth in fee and other income. -- Asset quality remains strong, reflected in Q3 cost of risk of 5 bps (Q2 2019: 6 bps). -- Strong liquidity and funding position maintained, with LCR higher than Q2 2019. -- Underlying loss before tax(1) of GBP2.2 million in Q3 2019 (Q2 2019: GBP6.7 million profit) reflecting the impact from actions taken to maintain a resilient balance sheet, including a one-off GBP2.5 million charge following the GBP521 million portfolio disposal in July 2019. -- Completed inaugural GBP350 million senior non-preferred debt issuance with pro forma total capital plus MREL ratio of 22.6% at 30 September 2019. -- Retained position as number one bank for overall quality of service for personal current account customers and second for business current account customers in the Competition and Market Authority's latest Service Quality Survey. -- Metro Bank is further evaluating its future plans to balance growth, profitability and capital efficiency, the results of which will be communicated in conjunction with the full year results.

[leoneobull] 24/10/2019 06:58

This one for SR from LSEmbingoPosts: 698Price: 193.60No OpinionRE: What does the morning look like?Wed 22:19There is little value in keeping a short open at these price points, with potential good news to come (in the form of Brexit), GBP rebound - or actual positive company news. Uncertainty largely removed with the publication of results. Vernon leaving sooner than anticipated. 10% are short. If we get more institutional buyers (and they've been buying at much higher levels), the squeeze may we'll happen. UK banks have been bouncing. This should be bouncing much more!

[midasx] 24/10/2019 06:58

Align Research

Results out this afternoon from Metro Bank could not, it seems to us, have been more devastating for the shorts and naysayers of the stock.

Key takeaway’s are as follows:

1. Continued strong customer growth (increase of 109k accounts to 1.9m)

2. Contrary to the most vocal bears, net deposits actually grew by just over a half a billion pounds and indeed, ex the wobble in Sep ref the MREL which caused a £213m outflow would have been one of the strongest on record. Key line ref the Sep outflow is “…but we are returning to business as usual”. Not sure where the bears go with this one now…

3. The “loan to deposit” ratio improved to 105% and continues to trend towards 100%.

4. Non performing loans were a nominal 0.2% – less than many other banks.

5. Shareholders equity remains at £1.7bn – approx £10 per share of book value with tangible book approaching £8.

6. Cost growth moderation going forward.

7. Tier (1) capital ratio (a key measure of capital strength) is now 16.8% – again at the top end of its peer group and reflecting balance sheet robustness. This is another key line – “As a result, the Bank’s Liquidity Coverage Ratio was higher than the 163% reported in Q2.”

We expect that the outstanding FCA investigation will likely conclude before the year’s out and that a modest fine is the most likely outcome – this will kick away another of the bear’s sticks that have been used to beat the shares down with and likely provide for a further relief rally. With a new Chairman to be appointed and continued rumours ref an outright takeover or take private by Vernon Hill as reported by the Telegraph HERE (and that could have had a bearing on his announced early departure today), the skew is, to our mind, resolutely on the upside now.

Our view is that the results today do not reflect in any shape or form a bank stressed with liquidity issues, bad debts or solvency – they in fact portray a bank that has a robust balance sheet, nominal NPL’s, continues to grow and that has a rating amongst its customers that is the envy of the established majors. In short this is a business that is likely to be coveted from a takeover perspective and that if ever there was a time to be absorbed given the Chairman’s departure and the massive disjoint to fundamental then it is now.

To conclude, this is a £4-5 stock in our eyes trading at £2 although we suspect tomorrow morning that will not be for long and would not be surprised to see the shares trade towards £3 before the week’s out. As per the data here, nearly 10% of the float remains out short and given volumes in recent days we are not sure where this stock will come from on a sentiment change. Buy.

UPDATE POST CONFERENCE CALL – Strength of liquidity in the bank was stressed and, most importantly, the absence of any plan whatsoever for any equity raise – this is a big issue for the shorts given tight float and short position per HERE. A key Q was asked towards the end ref potential takeover approaches that was deftly answered by Donaldson – adherence to their “fiduciary duty” was the corporate line but as per the material amount of press in this regard we would expect news on this front in the near term.

[leoneobull] 24/10/2019 06:56

RE: Stage is SetWed 22:23Agree. I was on the conference and if very much feels like the bank will be sold esp now with the focus on getting the best margins from existing assets and slowing growth to ensure it can demonstrate self funding and profitability (for prospective buyers IMO).

[f0rl0rn] 24/10/2019 06:55

MidasX are you a Vernon ?

[hazl] 24/10/2019 06:53

BE INTERESTING to see how the market reacts.

[leoneobull] 24/10/2019 06:53

See post from lse I just posted little phil. The stock market looks ahead. Vernon gone, cost cutting and profits up.Goodness gracious me, I see a rerate after a 95% fall. 3 pounds would be a healthy start

[leoneobull] 24/10/2019 06:52

See post from lse I just posted little phil. The stock market looks ahead. Vernon gone, cost cutting and profits up.Goodness gracious me, I see a rerate after a 95% fall. 3 pounds would be a healthy start