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Cud as I said before MTRO do not apply AIRB and are therefore not as thinly capitalised. Their mortgage book is £10bn apply the increase in provisions which Lloyds have applied for H2 of 0.2% and you get £20m. We will see in less than a week whether Odey's £300m prediction comes to fruition.
Just went through their Q2 results and they have booked almost no COVID-19 bad loan provision. Maybe that is why this rose today in the afternoon.
"The percentage of non-performing assets to total assets decreased to 0.31% at June 30, 2020, compared to 0.53% at June 30, 2019. The ratio of non-performing assets to capital and reserves decreased to 5% at June 30, 2020 compared to 6% at June 30, 2019 primarily as a result of decreases in non-performing assets over the last 12 months."
https://www.globenewswire.com/news-release/2020/07/27/2067924/0/en/Republic-First-Bancorp-Inc-Reports-Second-Quarter-Financial-Results-Named-America-s-1-Bank-for-Service-by-Forbes-Magazine.html
“It is a universal consensus that given the headwinds, investing in banks is as stupid an activity as investing in oil majors,” said Richard Buxton, head of UK Alpha strategy at Jupiter Asset Management. “It is unlikely that anything revelatory emerges from this reporting season to change that.”
“The economic downturn clearly means a big pick-up in bad debts,” he added. However, “I am extremely confident that whatever the damage to [profit and loss accounts] from the crisis, it does not mean they need to raise additional equity capital.”
https://www.ft.com/content/d42d735a-9aa3-454e-955a-3e0b22eda03d
IAG have a massive base in Madrid for Iberia, this will be the reason for the drop.
Now that they need money to shore up their own business, will they buy Air Europa?
Next week we have all the banks providing Q2 TU's. The tozzers at MTRO not only did not provide a TU at Q1, but are now not following the market and providing their TU 1 week afterwards. I am not surprised the whole market does not trust them.
BS - Great news, exactly what is needed. When are they going to approve Metro's AIRB application. It took VMUK five years, and Metro only applied in Jan 2018, hope it don't take until 2022.
You really think a outfit which employs slave labour to bolster it's margins will continue to operate as is? Watch over the next 12 months how their operating margins get decimated when they have to pay people minimum wages.
No sign of 40p today.