I large rally in the past 24/32 hours. Can’t see any news releases? Have I missed something?
I saw speculation on advfn that Marcus by Goldman Sachs might be interested in buying them out.
I have no clue if that has any substance, caveat emptor!
A quick Google does show that they have been building a stake in recent months though.
That was a operational issue in the next RNS.
Unsure why there has been a big rise but here is some recent events with Metro Bank:
Nothing is ever dull with Metro Bank
Metro Bank in talks to buy peer-to-peer lender Ratesetter. Metro confirmed “…that it has entered in to a period of exclusivity with RateSetter, but discussions regarding the potential acquisition are at an early stage.” in a RNS this morning.
J.P. Morgan Securities Plc now holds 5.54% voting rights for Metro Bank as of 11th June 2020 according to this RNS.
Shorts on the up again
And here’s the RNS.
Metro Bank’s H1 Results are due on Wednesday 5th August 2020. Should be another interesting week for Metro.
Metro Bank is a riot. Down to all time low of 59p now rocketing upwards…
In other news; David Fishwick from Bank of Dave fame would like a word with Vernon Hill
The focus should be on tech stocks, not Banks.
The Bank Of Dave was such a great TV show, entertaining and informative - they don’t make many shows like that. How long ago was that now? The world of banking feels like it’s changed a lot with Monzo, Starling and others.
Where did it all go wrong for Metro? Was it that they just tried to copy the legacy banks - high street branches and all?
I think it was like 2012 - a lot has changed since then. Don’t remember why they rejected him.
Metro Bank’s issues started when they miscalculated risk weightings for loans, that was a while back, since then they have replaced pretty much the whole senior team.
Right now the issues are the outstanding FCA investigation… interest rates… covid… and maybe they will have to do a MREL raise ( Banks sit on a stupid amount of cash due to regulations ) but that might not be needed depending on the new regime post brexit.
Personally I think their main problem is they bet big on branches just when every other bank has realised they simply don’t need them and new customers don’t want them. So their competitors are lowering costs at the same time as they are raising them and they’ll get all the old-fashioned unprofitable customers who just want to chat for 2 hours with their bank manager.
Also investing in peer to peer lending is just a horrible mistake at this point in the economic cycle (see funding circle problems) - getting risk right for the most vulnerable customers who use it is going to be even harder with that sort of lending, and they haven’t even managed well with traditional lending, let alone peer to peer.
All of this was then amplified by the Coronavirus crisis which is going to hit in-person and small business banking hard - they have all of the costs of their branches without any of the benefits for the next quarter at least, and then the coming recession caused by Covid19 and Brexit uncertainty is also going to hit the customers they have as their target market (SMEs). Servicing rates and rent and all those bad loans are going to be very onerous and I’d be surprised if Metro make it through next year.
Other British banks are at historically low prices at the moment and I think are a much safer bet than Metro, though even they might find the next 12 months difficult.
There’s about 60 branches, with a mixture of freehold and leasehold. I think they’ve slowed down on opening new ones for now though and the CEO is trying to get a discount on existing leases. Metro also made £13.3m in 2019 from safety deposit boxes at the branches.
With Metro having over 2.1 million customers with over £15bn in deposits. It feels like banks with branches attract larger deposits from customers compared to digital only Banks.
Metro is using the government backed schemes to lend a lot, on the £1.1bn they have already lent out they should get 20+ million a year in interest, with the 1st year interest covered by the government. The rest is also backed but isn’t as simple.
RateSetter was a interesting turn as Metro didn’t have great experience in short term loans, they then picked up a fintech company with that experience for a initial cost of £2.5m. Metro with RateSetter still has a lower valuation than Funding Circle by itself.
Anyway I think Metro Bank will see a takeover bid at some point, maybe that’s wishful thinking though
Newbie here. I’ve got a small amount of shares, but I’ve gained 44%. Stick or sell?
Nice pop for Metro Bank after reporting
There is a clause that lets Natwest exclude up to 10% of the loans from the purchase but even given that this is great for Metro. As it’s a “2.7% premium on gross book value results in an estimated £83 million gain on sale” and on completion it is expected to improve their total capital plus MREL to 24.2%.
This additionally gives Metro more capital for their unsecured lending portfolio through their RateSetter acquisition which will provide better margins.
In other news Metro’s new Chairman purchased 30,000 shares and the CEO of Metro purchased an additional 1,500,000 more shares in November. Also the disclosed shorts are slowly closing.
Metro Bank in the acquisition of RateSetter back book for a cash consideration of up to £384 million
Not easy holding Metro Bank stock though
Don’t tell WSB about this list
Are Freetraders on this one?
What’s going on?
Big movement in the stock price this morning and chatter about a short squeeze on Twitter. It has been pummeled by hedgies over the last couple of years. Might be a better bet than Dogecoin
Classic. Looked at this one last week. Missed the boat I think?
Whoa. Swing in the morning but then back to where it started.
Ignore the rampers, and only invest if you believe it offers a good opportunity. Good luck.