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I expect the share price to be well above 140p this time next year valuing Metro Bank at close to £1 billion as the turnaround around and acquistions strategy evolves..
During Q1 2024 the first bank acquistion is announced funded with the £3 billion mortgage book proceeds and completed my the end of Q2, early Q3. .
Cost cutting and opening hours cut to 6 days spurs profit growth..the banks first acquistion address fully the remaining rump of the £1 billion of historical losses left following the recent recapitalisation. Long term debt may also be recalled at some point given the callable nature of thr bonds charging 14% and 12% respectively on the two bonds issued..Exciting times ahead!
Why should they involve retail investors the bank clearly doesn't want day traders to benefit from a share price rise by keeping the placement private it reduces short term share price volatility..Expect the share price to slowly recover in the coming weeks..Lots of positive signs..balance sheet stabilised, refinancing complete, store opening hours being shortened, £50m costs savings mainly through 20% cut in workforce, although painful for those affected, best on the long run for the bank in its turn around strategy to reduce cist and automate back office services, disposal of a £3 billion loan book with thin margins, a focus on growing the bank through acquistions seems very likely with the support of Gilinksi who is a highly experienced player in consolidating bank markets...The bank remains listed a clear indication that the focus is on creating long term share holder value for all investors..Gilinksi will sell his stake in 2-3 years to a bigger bank player so expect the share price to multi bag from now on.
That is why retailers like us cant buy share at 30p? Why do they not consider any retailers at all?
Stay tuned on the mortgage book sale to Barclays and news on the first bank acquistion to follow in the New Year..😊
CEO average buy is 41.78p so that might give sp a little boost. Other than that I don’t see us moving anywhere any time soon until higher returns are delivered and they clamp down plans for opening more stores.
They were happy to let the CFO buy £60,000 but they didn't have time to offer anything to retail investors. They have zero interest in consideration for existing share holders or in share holder value.
Sneaky Midday RNS
Bye bye puppy off to the vets for the snip!
Emphasis on "now primed for growth"..
_______________________________
"Following these changes, the Board (excluding the Chair) will comprise five Non-Executive Directors, four of whom are independent, and two Executive Directors.
Commenting, Robert Sharpe, Metro Bank Chair, said: "In the years which Anne, Ian and Monique have served the Board, the Bank has made significant improvements to its risk and control framework and is now primed for growth. I would like to thank each of the Directors for their contribution and dedicated service to Metro Bank.”
Lol, and the share price has declined in all that time, hence the negative posts, unreal lol
Oh dear 521 negative posts and not a single positive one says it all...not very balanced..you'll see Gilinksi doesn't invest £102m on rolling dice lol!
Twogood, folk just need to look at your chief ramper posts, if they'd listened to you they're well under water, if they'd listened to me they'd still be under water. But nowhere near your levels
Some sizeable transactions again, short Collaboration continues
Cyberdoggy
Seems like this is the only share you've ever posted, member since Jan 2021, 521 posts all on this BB... lol
Ah dividends eh, not this chat again
Specialist lender makes sense for self employed market higher margins less bank competitors unlike the mortgage market with wafer thin margins and too many bank players all chasing the same customers plus the associated housing market risk with falling prices on the back of high interest rates. A very sensible move that Gilinksi is influencing about time the Board was shaken up and some of the dead wood removed organic growth is not the way forward..growth through acquistions and changing the product lending mix on a backdrop of cutting costs will be far more revenue and profit generating as well as addressing the £1 billion historical reserve losses moving Metro Bank to being able to declare and pay dividends in future.
IMO be a “ normal” specialist lender with 10% ROTE will do the job. it will be worth Book Value . No brainer for Gilinski.
LeagleBeagle
And your point is what exactly this is £3 billion of cash which doesn't need to be committed to fund loans the bank can use the proceeds to fund acquistions, to invest in treasury bills, or fund new loans ...your post on depositors taken cash out..not relevant you don't need to hold all assets as cash to fund desposit withdrawals..What your inciting is a run on the bank which is complete nonsense..
The Times reported some time back that selling the £3 billion portfolio of mortgages might realise a financial gain for Metro of between £80-£100 million depending on what the buyer is willing to pay.
You realise that a 3 billion loan book doesn't actually mean 3 billion of net assets right?
Loans are assets, deposits are liabilities... the money to fund those mortgages came from depositors who can take their money out at any time (assuming they're in an instant access account). Thus if you get book value for the debt you haven't earned anything for the bank, you have just freed up capital you can potentially deploy more effectively elsewhere - but that capital still essentially represents the money you owe depositors.
Or simply buy the Co-operative Bank and have a ready made mortgage portfolio, consolidate both banks, cutting costs by closing branches and moving staff and products across to Metro Banks new northern branches to be opened..Which are modern, centrally located, and have the space to offer lock box services covering 80% of property lease costs.
Wouldn't work unfortunately - the underwriting acceptance rates are lower and costs are much higher now, albeit the profit margin is higher granted - BUT the delinquency rates (X months in arrears) has quadrupled in last 18 months) so any improved margin/ profit would be obliterated by that ...I agree though sell it if not too much discounting, as its frankly not doing them any good keeping it!
The plan is to grow Metro Bank through consolidation and cost cutting through acquistion the UK mid tier retail banking sector. Gilinksi's speciality here expect share price to recover north of 100p during 2024 as Metro Bank untlises the £3 billion mortgage book sale to Barclays to fund its acquistions, market consolidation, and cost cutting strategy.
If barclays wants to buy the mortgages for 3 bn sell it i say . Metro can just sell new ones at a good rate with 3billion in bank and make a new portfolio
Expect the first acquistion to be announced during early Q1 2024.