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"So why didn't you take your own advice and not invest in Metro Bank last year if you thought it was a shoddy poorly led business?"
Because i genuinely thought that in a rising rate environment it was impossible to mess it up. From Dec 19- Dec 22 the bank had grown current account balances from £4.3b to £7.9b. Not i should say, because of anything Frumkin did. But people opened current accounts, and during Covid, kept a load of deposits on them. All they had to do is keep their fair share of them by not messing up. But they did. They lost all that value because the CEO was a clueless baffoon. And now he thinks by sacking everyone and destroying the model that generated those deposits, he can save his skin. But it just doesn't work. You cant shrink your way to glory with a sub scale current account business.
Chatbot2
So why were you not here crying out that Frumkin was lying at the last trading update guiding the market that Metro Bank had returned to profit and was now firmly reaping the fruit of its recovery?
Chatbox2
So why didn't you take your own advice and not invest in Metro Bank last year if you thought it was a shoddy poorly led business?
" The mortgage book brings an attractive proposal to any likely suitor. "
I've got another unhedged mortgage book yielding 3% if you want one. Special price- 99p in the £1.
I'm not employed by anyone to post here and I'm not overly negative on the bank, I would like it to succeed but I'm also realistic about it. Talking of which...
"We were pleased to return to profit on a statutory basis"
I bet the debt holders were not happy with the haircut that contributed to Metro Bank achieving this.
All that is all very well, but mkts just not buying it - it's shelved 1/5 of value in 6 days !
MT11 so are you employed by dwarves is this why you’re so overly focused on your plying of negativity? A small extract as a reminder that things aren’t the way you’re painting them here! Time to buy more! IMHO DYOR
‘Daniel Frumkin, Chief Executive Officer at Metro Bank, said:
“Overall, Metro Bank performed strongly in 2023 as we continued to position the business for growth. We were pleased to return to profit on a statutory basis and deliver our best half-year results for several years. After addressing our capital position in Q4, we also launched a successful deposit campaign, with deposits totalling £16.5 million as at the end of February 2024.”
“During the year we also launched a cost saving plan which included reducing store hours and roles across the organisation. These efforts will ensure the bank is right-sized for the future, with a strong focus on both digital and great customer service.”
“Looking forward, I remain confident in our ability to be the number one community bank. The work we have undertaken this year has laid the path to become a structurally profitable business and our focus towards the SME, Commercial and specialist mortgages sector presents an exciting opportunity in an underserved area of the market. I remain grateful for the continued support of our colleagues, customers and shareholders as we embark on the next chapter of our journey”.’
Got to buy in on ths sp price fill ya boots
"‘Folds into one of the bigger banks’… a possibility with a decent offer"
Keeping a bank from failing even if it wipes out shareholders is "a decent offer" to regulators and political parties.
We're some way off that but it can't be more of the same.
‘Folds into one of the bigger banks’… a possibility with a decent offer I wouldn’t be afraid of that scenario. The mortgage book brings an attractive proposal to any likely suitor. What offer would be satisfactory? I think however it turns around from here now to be honest happy to wait for either seeing as it’s barrels scraped time on the old SP so makes an ideal entry! IMHO DYOR
Galinski purchased near 10% for a steep premium so there was a belief that it can work and it all looked good if Metro Bank could convince the regulator to approve AIRB.
Not only did they fail that, but they also caused a panic by announcing they need to work on the AIRB application when they had not even had the official confirmation in writing. The next potential catalysts for the share price recovery are
- New CEO
- Sale of the Mortgage book to reposition as a specialist lender like Shawbrook
- AIRB application approval
- Easing of capital regulations for smaller banks
Then again nothing could happen and it folds into one of the bigger Banks with regulatory concessions.
Well I’m buying them blink and they’ll have been a mirage. This receding price line is over the top now, I mean come on back to mid 30’s without breaking a sweat and we see where we then go from there! IMHO DYOR
"Chatbot2; Do not see WHY gilinksi has kept Frumkim on in his role ? With what has happened to Metro under his watch"
Combination of what Westang said and i said. i,e, Frumkin put Galinski ahead of alternative bidders throughout the last year because Galinski was the only person who might keep him in role. In return Galinski got to buy in at what seemed a knockdown price- not so sweet now though
The issue now is that it isn't easy to replace him. Galinski not (yet) on the board. Chairman in particular hugely compromised. Firing DF might put the bank back in the regulatory spotlight and expose possible misconduct all round
But not firing him gets in the way of a deal. Maybe they need to do the old Lenin trick and just bring Frumkin out for special occassions- but after last weeks performance they best tell him not to open his mouth. But Galinski then needs to pull his finger out and do the negotiations. At 40p he's not too embarrassed and we might end up with a half decent bank.
Hence, patsy.
I think frumkin didnt get the job or keep it. through ability. He was used initially by tne founder (a good friend of his), to manage reg fall out, and since it looks like hes been used by gilinski to do his capital injection, for discounted shares move.
Chatbot2
Do not see WHY gilinksi has kept Frumkim on in his role ?
With what has happened to Metro under his watch
"Presume gilinksi knows what hes doing. Frumkim was his patsy, to get capital raise done. Wasnt frumkin mates with founder? Was founders patsy?"
I think the link was old CEO (both at NatWest when that bank's shareprice collapsed from £40 to £2.50); So between them they have outdone Fred the Shred!
Presume gilinksi knows what hes doing. Frumkim was his patsy, to get capital raise done. Wasnt frumkin mates with founder? Was founders patsy?
Ironic, metro were many good profits when lending outside regulation.
"I am agreeing as CEO should go as he have this mess and can't fix it . Time for change and correction its direction."
Look! Even Dori is on board!
Thought I would pop in and see how good old Metro was up to today, OH dear another new low
I am agreeing as CEO should go as he have this mess and can't fix it . Time for change and correction its direction.
Challenge is not so much when to sack DF but who to replace him with (who would take it). Its a tricky one. General view is that Shawbrooks the right deal and their CEO well qualified to run the combined business. What you need is someone to manage through that deal who can strike the right balance between getting a good price and not having Pollen Street walk away and wait for resolution. To do that you need to have a decent Plan B which gives enough of an option to put Lindsey under a but of pressure. Which is why Frumkin is completely shot in terms of running any negotiation. Ideally whoever is running the Co-op deal from the UBS side looks to be the perfect fit, but would probably cost too much to prize him away
Wish someone would buy us out & take us out of this misery , time will tell if this will turn into a good investment but at the moment it’s a disaster GLA
Total freefall now