Section Items

Clarification
The comments on this page are some of the thoughts that I had when considering this company and not a recommendation to take an action or to refrain from taking an action.

As you know we have no information about your circumstances, understanding of your investment goals or the level of risk that is acceptable to you. So it would be completely unreasonable to read these commentaries as recommendations.
Is This Just Pump And Dump?
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Commentaries tend to be created when I look at a share and decide if it is one that I want to buy either now or when I next have an unallocated pot.
Financials
As companies often report numbers in slightly different ways there are a number of entries to cover this and as these are rough notes there will usually be empty items.

The debt columns are shown as positive values if there is any debt, all other negative values are shown within parenthesis and without a sign.

Commentary On Metro Bank plc

Title: Metro Bank – Progress Or Not?
Company: MTRO - Metro Bank plc
Share Price Then: 193p
Author: Ian Smith
Date: Thu 24 Oct 2019
Comments: I tried something new on Wednesday, buying Metro Bank shares ahead of the latest trading update on the basis that the share price was getting close to reasonable with the protection of a 10% stop loss.

The effective departure of Vernon Hill, the fundraising in May and the loan risk evaluation have taken the gloss of the bank. But as a customer of a bank that has closed it local branch I believe that the branch is still a valuable tool for retaining customers and attracting new ones

With 109k new customers in Q3 it appears that many people seem to agree, however since last year deposits are down from £14.8bn to £14.2bn. With £14.9bn of loans this is a loan/ deposit ratio of 105%.

So why the big swing from a £34m profit (9 months 2018) to a small loss of £2.2m (9 months 2019), especially as Q2 2019 reported a £6.7m profit?

The answer seems to be prudent balance sheet actions which means nothing to me, is the bank now unprofitable or is this a short term blip as the impact of the issues mentioned earlier work their way through the system?

With Vernon Hill gone I see a barrier to the bank being bought by one of the major high street banks removed. Once bought the bank could be operated as a premium brand with branches in only those areas that they are profitable.

The Rolex of banking.
Financials:
ItemCurrent PeriodPrevious Period
Year20192018
Period9 Months9 Months
Revenue£316m£294m
Earnings
Adjusted Earnings
EBITDA
Adjusted EBITDA
Statutory Profit(£3m)£34m
Adjusted Profit£11m£39m
Total Debt
Net Debt
Read Count: 80

Commentary History