Member Info for mt11

They might not be able to, depending on the timing of the next trading update (normally end of October or start of November). I think the closed period is 30 days before the announcement.

That's not to say they will even if they did or had the money, they just all seem wet and happy to erode shareholder value.

I've started placing ridiculous buy limit orders share. Wish me luck. Who knows maybe it'll complete with this mad as hats Bank.

It's how aggressive the shorters are being on a already suppressed share price, they built a lot of their short position sub 70p. I don't know what the future holds, but objectively the share price is very detached from the current reality of the Bank.

Looks nervous

This dippy moron just said it's all fun and games and then walked off

It’ll be entertaining to see the shorters close their positions. We only know of 2 companies, but there will be more under the reporting threshold.

Incredible how one poorly considered RNS that went against the previous stance of not commenting on AIRB timelines has sunk the share price to all time lows. It’s not like they even said we won’t get it, it’s delayed, yet the share price is finding its way down to zero.

2.92% and 2.02%

Very bold unless they have additional information.

To be fair they had stabilised the ship until that ridiculous RNS, they were addressing what was in their control. Of course they benefited from the rate rise, but equally they were hindered by the lockdown.

Anyway, the key thing is that RNS suggests they will need to find other ways of reducing the regulatory capital like sell off some assets, raise more funds as debt or a share issue. On the other hand they could get lucky with a more favourable regulatory environment for smaller banks, or the PRA offers them AIRB before they are forced to act.

Daniel buying shares would draw a line under this, and so would if they issue a RNS explaining they will be okay without more funding.

But without more funding they can’t grow either.

On a more optimistic note BoE is looking at delaying the implementation of global banking reforms by 6 months. That gives Metro a greater window to strengthen their balance sheet.

Metro Bank really like to self-sabotage. The board has refused to provide guidance on when they will get the AIRB accreditation and then out the blue they say we are not getting it in 2023 with no further comment from the board and a huge gap until the next scheduled trading update.

They would have no issues getting a banking licence, if they were to buy Metro Bank then it would be some other reason.

"Following the CCyB increase, the bank is now operating within both the Tier 1 and MREL buffers and continues to strategically manage RWA allocation to ensure all regulatory minimum requirements are met and the group is able to gradually accrete capital headroom."

They have been operating within buffers for a long time, it's a delicate balancing act. See their investor calls and the most frequent question they get is around this especially around Metro perhaps needing to tap the debt markets or do a rights issue. It's one of the reasons why they offloaded their mortgage book. They are hamstrung until PRA relaxes the rules for smaller banks or they get AIRB accreditation. Getting AIRB accreditation would change regulatory capital requirements which would then free up that capital to be used for increasing revenue and profits.

We’ll get a summary trading update in November and then a detailed year report around February 2024. So, months of agony.

Metro Bank needs to resolve this before Basel IV comes into effect in 2025.

Clare Gilligan only joined this year but what an impact. No comment about how it’ll stop operating within the buffers. The share price is sinking because there risk that Metro will have to tap the debt markets or do a rights issue is higher than it was, either option are expensive.

For what it's worth they also reported higher impairment charges, now around £50m, up from around £100k. But even with that and the roughly £50m fine they got for their IT glitches, they are still in profit and looking to issue a dividend to their owners. I can't imagine we'll see a dividend from Metro Bank any time soon but if they are at least break even or in small profit with a better outlook then this will fly.

TSB is similar sized bank and they reported positive results today, which have rubbed off on Metro Bank.

Expect good things from the next Metro Bank update.

If it is a short then it will show up in the FCA short positions report. Hasn’t so far, and they need to disclose in 24 hours (??) so it looks like a long position.

If they acquired that level of voting rights outside of a CFD then Metro would have skyrocketed given how tight the available short float is right now.

There’s a very strong possibility Metro outperforms, especially if they get the AIRB accreditation and we finally see something in terms of more favourable regulatory capital rules. Although, even without that we now have better NIM, an executive team with a better handle on the factors in their control, and no more overhanging investigations.

Looks positive from here (finally). Let’s see what the next update in a month or so brings.

Dan sounded down on the MREL review, he said they never ran the bank on the hopes of it being more favourable. Said the current change is negligable, it means 50/60 bps as it currently stands.

Metro Bank published their annual report 2020

https://www.metrobankonline.co.uk/globalassets/investor-relations/metro-bank-annual-report-2020.pdf

Not had a chance to look at it yet. Perhaps there is something new of value in there though.