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From the results tucked away:
"and the gain recognised in relation to the haircut on the Tier 2 debt instrument in the debt refinancing, marginally offset by costs associated with restructuring."
Unusual to report a statutory profit ahead of underlying earnings ... didn't occur to me that would be an uplift.
Thanks.
It is not a one off cost. it is a one off uplift to income i.e. there is £74m of income (net of transaction costs) in the 2023 numbers that will not be in the 2024 numbers. That is why you have a statutory profit and an underlying loss (since teh income uplift is just accounting) The 2024 numbers start with a run rate £10m a month loss. If the costs come out that might get to £5m. But that is your start point. You then have to believe a story that says deposits will keep flowing in, despite slashing the front line staff, the bank will pivot to higher yielding assets (despite the last pivot being teh purchase of Ratesetter that is being shut down) and the bank wont need to invest a load of money to upgrade its systems like everyone else. This is all basic stuff. if you cant understand what the bank is reporting hard to understand why you can hold any credible opinion
More job cots announced on yahoo this morning :-)
So a £100m one off cost not taken into account in H1 reports. So prey tell us all how a one off cost in 2023 feeds into 2024.
The £100m is the write down of tier 2 debt going through the P&L. In other words it is a one off uplift to income at the expense of the debt holders. Less the £26m of costs associated with the recapitalisation, they statutor profits are inflated by £74m. Which is why the business is loss making on an underlying basis. which is why, when you consider it was profitable on an underlying basis to the tune of £16m in H1 the results are not good. Q4 was a £30m loss
Imo, metro will be taken private for less than the current market cap, just not sure for how much less than current cap, or when that will be, but that's my opinion on what the future holds
According to the Appendix page 26 in the presentation given today, a £100 million outgoing was booked to capital raise and refinancing impact the underlying profit compared to statutory profit, with £2.4 million to net C&I costs whatever these are - I have not bothered to decode.
Seems strange to add what I assume are one off costs to underlying share reports going forwards, but there it is - but someone has done well in the refinancing department of some company somewhere so it seems.
Assume the above are one off costs, and the results posted today seem pretty good for a bank in the trouble it was last September.
Question for you Cyberdoggy I think your observations on the recapitalisation look on the money (i.e. who lent the shorters the stock to drive the price down to where Galinski wanted it in october?) But how does a stock that is so closely held find a genuine price point if it is so open to manipulation. Or more pertinently, where do you think Galinski wants to take it? Would you agree that the challenge he has is that he could try and ramp it up, but that would increase the takeout price if he has to put more in and essentially take private? So he is probably fine with it bumping around the mid-30s and hoping that either someone buys at say 40p, or slash and burn actually works and he gets a but more profit to avoid the recap? Regulator cant be happy- as the Autonomous lady also alluded to
The business is going forward and all the scaremongering from Sky news last year has been unfounded. Facing forward and growing . A few more sessions and this will be back over 50p. Chatbot must have been made redundant from the bank
People are finally realising that comments on here from certain sections have been baseless ramping now for a long time, as I've clearly tried to point out for a long time now on here. Now following the results call today its all been made clear on expectations for future growth etc. So now we can finally put the nonsense to rest and ignore the nonsense ramping you will no doubt continue to see on here.
So in the prospectus in November, on which we had to vote on recapitalisation, the bank guided mid-single digit ROTE in 2024 and 9% ROTE in 2025. Less than 4 months later, guidance is we are loss making in 2024 and low single digit in 2025. No credibility at all. The lady from Autonomous called it. They will need more capital. Has to come from Galinski and he will have to take private. He wont do that for any more than the 30p he put in last time so no chance of a rerate.. We need someone to come in for this bank and take it out. But my fear is that buyers will will wait until it is right up against it again, and the bank may be too damaged to pass the diligence. Only good news is that my maths says current price effectively prices in another £100m of equity taking on 30% of the bank. So it only goes down further if there are solvency issues. I don't think the press will drive any broad customer reaction based on these results. So its wait and see i guess
Underlying profit and pre tax profit....
The most important metric is the underlying one for investors..Pre tax includes any one off gains and losses,eg provisions,sales etc.. Underlying is the figures used to show the actual day to day trading profitability of the company.
Therefore Metro made another loss for 2023..
On a positive note,the bank only became profitable in final quater
Interim CFO looks like she understands the maths. Must be why they are replacing her...
Now this fool is channelling his best impression of Ted Lasso.
His interim CFO chuckled - she's obviously heard this anecdote multiple times. Anyway he quoted the John Wooden and not worrying about the competition.
He said 2024 will be a loss making year.
i said *****uple which means "increase or cause to increase fivefold"
why on earth is that redacted?
he just said they'll *****uple profits between 2025 and 2028
lol this clown
So the big chunks of the first £50m cost savings look like they come from closing Ratesetter, which the CEO heralded as the saviour of the bank, but now "only works in a low rate environment" (erm. I don't think so.) and changing the opening hours of stores (which he was highlighting as the key differentiator in the half year). Next chunk probably comes from not investing in all the digital upgrades which were the future but maybe now..... Honestly, i agree that £550m cost base looks too high. But any fool can fire people. The question is either why were they there in the first place (in which case why didn't you do it earlier) or why can you get rid of them now when you couldn't before (jwhen low cost deposits are now far more valuable). Any which way it is incompetence
You also need to take the additional £30m of cist savings to come in Q1/Q2 on top..£50m already bagged, 1,000 heads cut, and branch opening hours reduced there is still plenty of scope to cut costs further imho!
It made a £30m profit on a statutory basis the underlying loss is 67% lower than prior year.
So how do we get a statutory profit of £30m from an underlying loss of £16.9m!
Most on here were expecting Metro to make a profit even me .
It did not . It may of done if there was not an out flow of capital £
Cyberdoggy i do not know if you own any Metro shares
But has been right that the sp has been on a downward path.
As long as Metro or any news saying that there's a chance we could go out of bizz i'm hopeful Metro will survive and grow
Give it few sessions
And not the start I was expecting ffs
Back to the dog pound for you Cyberpuppy!
500+ odd negative posts since January 2021 as anyone can tell checking your profile and all posts on one BB Metro Bank no doubt you bought back in the heady £40 days and hold a long term grudge...its the future that matters, results were good imho and in time the share price will recover!
At least 40p starts