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You mean the next 6 months?

Cud: They have made some progress re costs, when you compare to H1 2019 you have bear in mind their branch network has increased by 15% during the period whilst their expenses have only increased by 2.7%, so there has been some progress.

Most of these will be absorbed into MTRO. Not having to deal with individual investors will reduce costs significantly.

The real story is the scalability and synergies which can be derived from this acquisition. MTRO's cost of funds is 0.7%, they lend out at 8% the delta is the profit.

Ever wonder why MTRO has 2,000 people in head office and what they all do? there will be alot of synergies from this.

Well if they lend out £0.8bn through this channel. Then that is gross income of £62m, if their annual costs are £35m that is a profit of £25-30m. This is before any synergies and having to deal with the PI's as before.

Think of it as an option. Pay up front £2.5m for a business which could potentially provide annual profits of £30-40m into perpetuity, if in 3 years the business does this then they pay the contingent deferred consideration of £9.5m. Pretty low risk from MTRO's perspective. This is also a business which is thinly capitalised so not much of a need to put money in.

Most fintechs do.

Yuri - I have used RS and can tell you it was very good when I did, they have a very good management team. The only reason it went kaput is due to Covid. MTRO now has the best of both worlds a great deposit gathering branch network and a new low cost channel to dole out loans.

£200m no way. RS only had Paid in capital of £50-£60m. They still did well getting it for a £2m. I bet if Hill was around they would have paid £200m for it.

I see no mention on this transaction, looks like they only like posting bearish articles re. Metro

HMSO have a very valuable outlet business which has a market value pre-covid of £2.4bn, this is a business which grew 4-5% pa and is considered to be the best retail asset in the whole of Europe. They also have debts of £2.4bn. If HMSO wait 24 months and sell those assets then they can be debt free.

Looks like they will pay no where near that. Plus on an annual basis this will provide MTRO with £30-£40m of additional profits. Enough to offset the MREL.

What a great deal, get entity for pennies in the pound and assume no credit risk.

Front Page of the FT.com all day Friday to Sunday. This will not end well for him. Never understood men who force themselves on women, with his money he could have hired the best call girls in London.

The article re Odey has been on the front page of the FT website for 3 days now. The Ft destroyed Neil Woodford, maybe they will now destroy Odious.

If Odious goes down so will his fund. What will it mean for MTRO I wonder?

Jimdson, it is very difficult to run a sub £2bn fund profitably. I wonder if this news will get the ball rolling from a investor redemptions perspective and ultimately the shuttering of his fund.

Cud even if VMUK is optimistic we know LLOYD's were very pessimistic with their write-downs today. They have a £289bn mortgage book and they only provided £603m for this. I will let you do the same calculation on MTRO's £12.5bn residential mortgage book.

What I find strange is they have announced no further redundancy program, no use of furlough. Instead they have awarded all employees £1k. They must be confident of something.

Cud £115m provision on a £12.5bn residential property portfolio and another £2.2bn of commercial loans? really?

VMUK released their commercial loans provision in H1 and applied a £31m provision to their £59bn residential property portfolio.

The reduced fee income is based on lower transaction fees.