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 – Crashes On Not Good Enough News!
Company: MTRO - Metro Bank plc
Share Price Then: 1491p
Author: Ian Smith
Date: Wed 23 Jan 2019
Comments: Metro Bank dropped to 1,491p or 30% on what appeared to be an okay trading update, this drops the P/E ratio to around 117!

So is this an over reaction or the case of a bank “buying” business as it doesn't have the uniqueness that it likes to promote itself as having?

Whilst Metro is mostly a retail bank with 1.5million accounts and 60 “stores” (branches) it is also a provider of commercial loans.

From the this update and the 3rd quarter report the simple numbers are £50million profit on £14billion worth of loans and £16billion of deposits, apparently the expected profits were supposed to be close to £60million.

About 33% of loans are to commercial customers, 65% residential mortgages and 2% other consumer loans and unless I am misreading the last quarterly report they seem to be allowing 0.2% of the loan value for bad debt under IFRS 9 rules!

In July 2018 Metro bank raised £300 million by issuing new shares representing about 10% of the issued shares, so a £50million profit is pretty small change and coming back for more cash doesn’t seem impossible.
Financials:
ItemCurrent PeriodPrevious Period
YearN/A N/A
Period
Revenue
Earnings
Adjusted Earnings
EBITDA
Adjusted EBITDA
Statutory Profit
Adjusted Profit
Total Debt
Net Debt
Read Count: 42

Commentary History