Member Info for Jinny122

They're all jumping ship. First, industry renowned chief risk officer leaves, now Roger Farrah (ex CEO of Ralph Lauren no less).

Company will struggle to fill its key vacancies with the right calibre of candidates. Even more so as its clear it has no standalone future, who will take the career risk?

End game imminent here.

The notion that a tranished company with the nickname of 'Crapita' which routinely fails to deliver basic bread & butter services, will be capable of ditching its bread & butter to challenge the world renowned high tech outsourcers was always fanciful.

Turnaround business plan completely wrecked atm and recession a high possibility

Remember this?

Think its safe to assume that Bacal was the primary shareholder pushing for Frumkin's appointment.

No one else has bought to show support and Cohen has resumed selling.

WOW!

Regulators should step in, banks are built on confidence.

Jindson, no joy at all in all that.

Just highlighting how the bank wasted 6 months doing very little in the face of a tsunami, and now its been very badly caught out at its very weakest point.

Management should act responsibly and shepherd this bank into stronger arms before it is too late... really.

Imminent and unexpected global recession, 50bps cut to UK intetest rates to historic low of 0.25%, SP crashed and mcap now £180m vs. £3.5bn less than 2 years ago, mortgage book cusyomer repayments could be frozen, bank capital buffers reduced so even more intense competition than before, hope of specialising in 95%/100% ltv mortgages now out of the window in a likely recession, flight of deposit book to big banks imminent... but dont worry, NOTHING HAS CHANGED LOL

Jimjam, certainly watching closely.

Just hope management has seen the writing on the wall here for the sake of all concerned, this bank is clearly being picked offand torn to shreds by hyenas


Regulators should intervene and force it to safety.

Metro is tiny, no big name acquirer will waste their time messing about with a JV for a £180m mcap bank.

Metro's fate is either get swallowed or wander alone in no mans land into oblivion

From limited experience, in this situation management give up on the equity and focus on safeguarding the business as an entity, which in turn safeguards their positions.

Equity has served its fundraising purpose and is now collateral damage.

Theosus,

What incentive does current management have to save the shares from wipeout?

They'll have put the thing up for sale in a big hurry

Yuri, Meyro's problem is not fundamentals. Its sentiment which is at rock bottom. This SP will be tortured way more than most in the morning

The good news for holders here is that Metro may be forced to consolidate (and quick) by regulators given current climate and need to support the economy.

Customers want lowest rates for borrowings and highest rates for deposits. Thats it. Metro does very little for them there. Give them those, delivered through people-peoe banking, then you're winning.

Jimjam, can you name the last UK bank turnaround plan that worked out well for shareholders? RBS?, Barclays?, HSBC?, Stan Chart? Even LLOY SP has been largely stagnant

Good work by Discus1.

Although much of those buys may be daytraders who then sold same day or next. Its unreliable to calculate accumulation on just that

Truly off-the scale cost, 8.3% of group revenues per annum just to service interest on the existing idle MREL capital buffer. Not to mention the additional £500m MREL requirement they'll have to issue.

If interest rates get cut by 50bps, Metro cant afford to drop its deposit rates much given the online competition, so its cost of funding disadvantage will increase.

Mortgage rates will also drop across the market following base rate cut, but Metro cant afford to follow suit given its high cost of funding.

Looks terminal here in the absence of drastic action, which looks unlikely as we've discussed.

Its hard to comprehend that after a 4 month hiatus supposedly spent drawing up a revised strategy, they are still debating to today whether or not to do asset sales. This is central piece of any turnaround strategy according to analysts, and they havnt even made a decision, unbelievable.

The Metro bank Ceo package completely disincentivises a T/O. Look at this:

OPTION 1: Upside from a £6/share T/O this month: 100,000 share options (assume strike price of £1.26) x £6 = £474k.

OPTION 2: Upside from ruling out a T/O and chasing a 4 year turnaround strategy: £740k base annual salary x 4 years gives £3m. Then add 200% maximum bonus potential with benefit of histoic low performance, but assume only pays out 50%/ annum, this gives an additional £1.5m. Then add the share options (assume strike price of £1.26 and then sold in 4 years at low ball £3/share) gives an additional £174k. This excludes any additional share incentive awards granted over that 4 years. So the very conservative Total under this option is : £4.7m.

If it was you, which option would you go for?