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TG2D - Are there any more jobs going in the Metro Bank Covert P.R. Dept?.... might come out of retirement if so !

Working again @ 39p now....

Systems glitch like Oct hitting small cappers. Again.

https://www.telegraph.co.uk/business/2023/12/05/ftse-100-markets-news-live-thames-water-us-jobs/

What on earth is happening - any ideas - it's up and down like a sex workers' undercrackers this morning!

It went up to 42p c 5 % gain at about 10.00am, and now down to 36p / c 8% loss...

Markets still not keen as 3% down today and now at circa 38p despite shorts albut dismounted, cost saving announcements etc etc...I fear it's heading for lowish 30's by yr end, hope not, but looks that way.

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!

I agree. Staff told me a few times that Sunday and Saturday are the busiest days only 8.30-10.30 is quiet 7 days a week.

Losing the USP is going to be a demerit for sure.

Having said that it's failing to attract switchers in home countries and midlands (where they are prevalent) and staff told me they don't get much switch business....most new openings are SDB related and w/e and after school convenience related.

Opening up up north or buying Co-Op retail banking (with tiny branches btw and no SDB), I don't think would move the dial massively - although they are profitable.

Btw is a misconception that it's the tech-phobic elderly who are main clients...their % of over 60 account holders are the same as the big 5. From some albeit unscientific visits in last month to 8 branches where I spent about 4 hrs in each... the main users where tradesmen and a large broad ethnic %.

As I said before I think the whole branch thing is doomed and in 2 yrs it may look very different, if Reg agree.

Gilinski' has done a bit of a Bernard Tapie, and manoeuvred into a back of the sofa money majority shareholding in an incumbent and usually costly to aquire Banking Licence wrapper.

I think he'll now strip it a bit, ruthlessly cut costs, and start again afresh in a new non-traditional retail banking environ. This drop in days and cut in FTE is just testing the waters.....

Putting aside the vehicular comparisons, close to 3% slide today, so the markets not too enamoured/or the shorts have had a bit more paper lent out to them.

Yes I feared that over the weekend 32-33p my prediction sadly for January/Feb.

Out yesterday morning, the minute the mortgage book announced and gave a tiny short-lived spike...as space-pup says shorters will dismount around that point imho too.

Yep 6.4% shorts and climbing.

Tomorrow is going to be really, really rocky.

I'm out first thing tomorrow..... as I can only see this going to 32-33p before Accts drawn up, and then perhaps lower if deposits still lost and costs super high/profits (due to v competitive saving rates/Morg rates) depleted.

Some wise acquisition action in 24/25 might move the dial, I'll clamber back aboard then.

Was in 2 Metro's yesterday, as in town.

Both branches hitherto sleepy in selling to punters, were heavily pushing their new deposit rates... which were previously circa worst in class, to now circa best in class at circa 5.5 % or so for £500 instant access.

Clearly they have tactically decided that the outflow (that I suspect was pretty hefty) in Oct needs to be plugged before yr end accts 31/12/23 are drawn up.

Profitability will be reduced of course, being so 'generous', but at least their doing something positive for a change !

Very interested to see what the Mondays EGM elicits / goes down like.

Understood thanks. Nothing of value-added then after its been in the wash-cycle.... and frankly a bit 'robbing Peter to pay Paul', hope the next 3 billion is more profitably deployed. Rgds

Serious question.

Does anyone here know what happened (or how it was reinveste), to the £3.1 billion MortBook sale to NatWest a couple of years ago or so.

I've been through the balance sheets for the last few years and can't see it. It's an awful lot of seed money.... did it buy value or just keep the branch halogens glowing for 3 yrs? As a comparison Metro's total C value, at its peak in 2018, was similar £3.5 billion.

Auto-Spell checker !!... 'Purchase by Gilinski' of course....

Glowacki pls - are you proffering that in 15-20 days we could be seeing c 5p a share (i.e. 87.5% less than the discounted purchase by Glowacki) vis 'mid single digit' - that seems an uber doom-laden prediction!

Are you suggesting it will go to 4p a share pls Cambridge ?

Vis 'will loose 90% from here'.

METRO launched two new products into the Intermediary markets today - more keenly priced BTL /and stress test criteria and hair cut on their std Domestic Mortgage rates.

I'm even more unsure what their strategy is, thought it was commercial mortgages and complementary acquisition targets....not more of the same 🙃

Well it as £16 million for the last half year, so circa £8 million a qtr.

if it was along those lines, they'd have said 'profit in keeping with recent two qtrs' or something along the lines of that....I suspect its c £2-4 million, hence the somewhat coyness of the parlance !

STATEMENT BY METRO Q3

'As announced on 8 October, post quarter end Metro Bank noted an increase in deposit outflow rates in

advance of the announcement of the capital package. Since the announcement, daily flows have returned to

more normal ranges.

The third quarter delivered continued momentum in Personal and Business Current Account growth and

customer acquisition as well as a modest statutory profit after tax. Lending reflects continued controlled asset

origination and as such capital resources were broadly flat relative to 30 June levels'.

I read that as, there was some growth before the debacle, but it was not profit making...then a deposit outflow...then daily 'in and out flows' (10th Oct- 6th Nov) have got somewhere close to what they were, but not back to usual.

But for me the question is, has the flight/exodus money returned and did the loan to deposit ratio of 80% (81% in June) get reduced significantly in early Oct?

And if so. do they have to therefore to shift the £3.1 billion loans to get the ratio up?

Yes, a day or so later than last qtr.

One thing to remember though is that these are pre-shenanigans i.e. up to 30/9 so the results may looK ok(ish) .

BUT, and its a big but, this is 6 or 7 days before the woes of the restructuring and BBC/FT/ITV etc etc spooking many deposit holders and safety deposit box holders (who fund 70% of plate glass branch overheads of course) into withdrawing money/closing s-d-box acct's and we don't know to what extent the exodus was, but I was advised by a staff member of a branch in central uk it was 'quite noticeable'. This may have a bearing on LAST QTR/year end and lending/capital adequacy buffers going fwd next few months!