What's the view on Metro Bank? can it recover ?

[Jon277]

So Metro Bank was suposed to be one of these challenger banks that the government was keen on.

Then it got fined £5 million on governance issues and the share price has plunged and never recovered

Why hasn't it recovered yet? Do you think it can go back to the share price it was before the plunge?

Thanks
Jon

[dealtn]

So Metro Bank was suposed to be one of these challenger banks that the government was keen on.

Then it got fined £5 million on governance issues and the share price has plunged and never recovered

Why hasn't it recovered yet? Do you think it can go back to the share price it was before the plunge?

Thanks
Jon

Metro Bank was fined £5,376,000 on 22nd December 2021

https://www.bankofengland.co.uk/news/2021/december/pra-fines-metro-bank-5376000-for-failing-in-its-regulatory-reporting-governance-and-controls#:~:text=The%20Prudential%20Regulation%20Authority%20(PRA,reporting%20governance%2C%20controls%20and%20investment

The share price closed that day at 94.25p. Current share price 95p.

What am I missing?

[88V8]

Why hasn't it recovered yet? Do you think it can go back to the share price it was before the plunge?

The share price closed that day at 94.25p. Current share price 95p.
What am I missing?

Perhaps the £30 SP of former times?

V8 (I hold, a little)

[richlist]

I don't know how they make any money.......the products it offers are not competitive, they are at the bottom of the chart. So, very few will bother to deposit. The only action that I'm aware of are people who are opening Metro current accounts so they can use them for account switching to pick up payment bonuses. I don't think being dog friendly is enough to entice me through the door.

[HillManMill]

There has been a Metro Bank branch near me for some years, I was cyncial but...

In early 2022 an established high street bank started to charge for the very small club that I help to run. We looked around and found that Metro Bank was one of the few providers that offered free banking for the club and so the account was switched. This caused me to visit the branch, I was impressed with the quality of staff, approach and efficiency of the service received, there was a good footfall in branch too. I do however remain cynical of the physical size of the branch, I am sure it would function equally well in a smaller space.

Clearly company fines present major risks to investors, risks that senior management need to address.

[jaizan]

I think their USP was supposed to be branches open 7 days a week.

Firstly, many people hardly ever visit banks these days
Secondly, they foul up customer service, with half the staff conspicuously avoiding customers and hence slow service. So their USP is poorly executed.

I closed my Metro account.

[88V8]

I closed my Metro account.

They seem to be managing OK without you...

u/l rev +31% (NIM up 52bp). Cost of deposits DOWN despite mkt rate changes, cost of risk 32bp vs 18bp. U/L eps -30.5p vs -101.1p. U/L profits in 4Q22. Targeting mid-single digit RoTE by 2024. Resuming store opens (North of Eng.)

SP now c140p.

V8. I hold some bonds and some ords.