Member Info for zccax77

A banking licence is not worth much:

https://www.altfi.com/article/4481_when-tandem-met-harrods-we-had-sir-but-we-didnt-have-dame

Nationwide has a CET1 of 35%, they don't need an outfit like MTRO.

Why do you need a hotel?

BBLs are 100% underwritten by HMG, there is zero capital impact on metro neither do they assume any credit risk. The only thing they get is 2.5% pa as like a handling fee

Well with that kind of outcome in the horizon you have to ask management why have the not put the business up for sale. The upcoming H1 update will make or break this company. I will not want to stick around to next September if the update is poor

£500m *13%*5years = £325m, that's a massive transfer of value from equity holders to bond holders. Significantly more than the current market cap

Bond holders will get the last laugh, when metro go to issue another 500m of mrels in 2021 don't expect to pay any less than 13%

I see on twitter the BBLs are still not up, metro has 150k current account holders, wonder how many will stick around

Ray could not because he likely did not have £35m spare.

Iron horse, yes I am still curious where Odey sees a £300m loss coming from?

You think, their current MCAP is £125m. They plan to spend £350-400m over the next 4 years to make these efficiencies.

Page 29:
https://www.metrobankonline.co.uk/globalassets/metro-bank---fy-2019-results-presentation.pdf

Collateral:
For commercial term lending, additional forms of collateral (such as debentures or unsupported guarantees giving recourse to our customers) are excluded from these debt-to-value (‘DTV’) figures, so the true credit risk exposure on these loans is lower and is underwritten on the strength of all types of collateral.

Page 22 of R&A:
https://www.metrobankonline.co.uk/globalassets/documents/investor_documents/metro-bank-annual-report-2019.pdf

Metro's problem is not their loan book, but their entire business model. GBP600m spent on 75+ branches, I am still surprised the auditors did not write-off these assets at year end when retail assets have been falling 20%+ Y-o-Y. Their modelling department must have some amazing excel skills to make their quantitative forcasts compelling to their auditors.

Look at the year end accounts where their NPL's shot up from 0.15% to 0.53%, then they broke down the collateral sitting behind them = 195%.

Page 12:
https://www.metrobankonline.co.uk/globalassets/metro-bank---fy-2019-results-presentation.pdf

Payment holidays are only a deferral of income, I am not sure how it would equate to a write-off or charge to the income statement.
In the Q1 update they said they had shifted their deposits from fixed duration to on-demand, thus this will increase their NIM. A £300m NPL is 10% times what VMUK have booked.

So CFO/CEO only got 25k shares? disgusting behaviour dilluting PI's. The CEO is ex-DEBENHAMS, CFO is ex-HMV, creative bod is ex-Arcadia; I see a pattern there.

Odey's raison d'etre is that MTRO grew their loan book too quickly and hence they will likely suffer larger NPL's as a result, the fact this is trading at a 92% discount to book does not get through his fat head. ENA have seen what has happened with VMUK and realised how thin the ice is on their short and thus closed especially considering that Metro's loan book is far more conservative, 99% collateralised, have a higher CET1 and ultimately more heavily collateralised mortgage book due to them not applying AIRB.

100notout, same here, this is nothing short of being robbed. I even got he cash ready to invest to double down based on the sky £80m figure.

Not sure what good he is going to do when he comes from a more archaic outfit than Metro bank.

But you would buy BOO with a MC of £5bn and but only 2x the revenues of TED?