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Metro Bank

LSE:MTRO
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MTRO
LSE
£791M
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

Metro Bank PLC, together with its subsidiaries, provides retail and corporate banking services in the United Kingdom. The last earnings update was 57 days ago. More info.


Add to Portfolio Compare Print
  • Metro Bank has significant price volatility in the past 3 months.
MTRO Share Price and Events
7 Day Returns
-4.1%
LSE:MTRO
0%
GB Banks
1.5%
GB Market
1 Year Returns
-75.1%
LSE:MTRO
-9.9%
GB Banks
2.1%
GB Market
MTRO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Metro Bank (MTRO) -4.1% -1.2% -45.2% -75.1% -60.3% -
GB Banks 0% 7.6% 6.2% -9.9% 15.3% -12.2%
GB Market 1.5% 5.2% 9.7% 2.1% 17.8% 6.8%
1 Year Return vs Industry and Market
  • MTRO underperformed the Banks industry which returned -9.9% over the past year.
  • MTRO underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.1% over the past year.
Price Volatility
MTRO
Industry
5yr Volatility vs Market

MTRO Value

 Is Metro Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Metro Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Metro Bank.

LSE:MTRO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= £14.28 * 5.2%
£0.74
Book Value of Equity per Share Weighted future Book Value estimates from 9 analysts. £14.28
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:MTRO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.595 (1 + (1- 19%) (74.96%))
0.971
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.971 * 6.65%)
7.68%

Discounted Cash Flow Calculation for LSE:MTRO using Excess Returns Model Model

The calculations below outline how an intrinsic value for Metro Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:MTRO Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (5.2% – 7.68%) * £14.28)
£-0.35
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £-0.35 / (7.68% - 1.23%)
£-5.47
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £14.28 + £-5.47
£8.81
LSE:MTRO Discount to Share Price
Calculation Result
Value per share (GBP) From above. £8.81
Current discount Discount to share price of £8.12
= -1 x (£8.12 - £8.81) / £8.81
7.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Metro Bank is available for.
Intrinsic value
8%
Share price is £8.12 vs Future cash flow value of £8.81
Current Discount Checks
For Metro Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Metro Bank's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Metro Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Metro Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Metro Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:MTRO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.29
LSE:MTRO Share Price ** LSE (2019-04-24) in GBP £8.12
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 10.28x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Metro Bank.

LSE:MTRO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:MTRO Share Price ÷ EPS (both in GBP)

= 8.12 ÷ 0.29

27.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Metro Bank is overvalued based on earnings compared to the GB Banks industry average.
  • Metro Bank is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Metro Bank's expected growth come at a high price?
Raw Data
LSE:MTRO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
33.9%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.85x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

LSE:MTRO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.85x ÷ 33.9%

0.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Metro Bank is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Metro Bank's assets?
Raw Data
LSE:MTRO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £14.40
LSE:MTRO Share Price * LSE (2019-04-24) in GBP £8.12
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.52x
LSE:MTRO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:MTRO Share Price ÷ Book Value per Share (both in GBP)

= 8.12 ÷ 14.40

0.56x

* Primary Listing of Metro Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Metro Bank is good value based on assets compared to the GB Banks industry average.
X
Value checks
We assess Metro Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Metro Bank has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MTRO Future Performance

 How is Metro Bank expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Metro Bank expected to grow at an attractive rate?
  • Metro Bank's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Metro Bank's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Metro Bank's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:MTRO Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:MTRO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 33.9%
LSE:MTRO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 17.2%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:MTRO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:MTRO Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,044 251 2
2022-12-31 860 165 2
2021-12-31 712 133 8
2020-12-31 595 90 11
2019-12-31 490 50 10
LSE:MTRO Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 396 153 27
2018-09-30 370 28
2018-06-30 344 1,284 23
2018-03-31 315 16
2017-12-31 286 2,294 11
2017-09-30 260 8
2017-06-30 236 1,632 3
2017-03-31 214 -5
2016-12-31 190 1,169 -17
2016-09-30 165 -39
2016-06-30 141 966 -50
2016-03-31 123 -52

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Metro Bank's earnings are expected to grow significantly at over 20% yearly.
  • Metro Bank's revenue is expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:MTRO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Metro Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:MTRO Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.62 2.04 1.21 2.00
2022-12-31 1.06 1.30 0.83 2.00
2021-12-31 0.95 1.47 0.59 4.00
2020-12-31 0.62 1.09 0.23 6.00
2019-12-31 0.38 0.70 0.22 6.00
LSE:MTRO Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.29
2018-09-30
2018-06-30 0.26
2018-03-31
2017-12-31 0.13
2017-09-30
2017-06-30 0.04
2017-03-31
2016-12-31 -0.22
2016-09-30
2016-06-30 -0.71
2016-03-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Metro Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Metro Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Metro Bank has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MTRO Past Performance

  How has Metro Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Metro Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Metro Bank has delivered over 20% year on year earnings growth in the past 5 years.
  • Metro Bank's 1-year earnings growth exceeds its 5-year average (151.2% vs 70.7%)
  • Metro Bank's earnings growth has exceeded the GB Banks industry average in the past year (151.2% vs 42.2%).
Earnings and Revenue History
Metro Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Metro Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:MTRO Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 396.10 27.10 45.10
2018-09-30 370.13 28.09 71.27
2018-06-30 343.93 22.89 75.87
2018-03-31 314.65 16.12 71.27
2017-12-31 285.53 10.79 71.27
2017-09-30 260.29 8.43 55.60
2017-06-30 236.03 3.32 61.39
2017-03-31 214.10 -4.61 55.60
2016-12-31 190.40 -16.75 55.60
2016-09-30 165.22 -39.37 45.91
2016-06-30 140.79 -49.65 47.44
2016-03-31 122.82 -51.99 41.62
2015-12-31 113.17 -49.20 45.91
2014-12-31 73.29 -41.11 34.85
2013-12-31 30.51 -46.44 24.97
2012-12-31 10.83 -34.55 6.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Metro Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Metro Bank used its assets less efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if Metro Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Metro Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Metro Bank has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MTRO Health

 How is Metro Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Metro Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Metro Bank Company Filings, last reported 3 months ago.

LSE:MTRO Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,403.00 593.00 3,146.00
2018-09-30 1,404.00 249.00
2018-06-30 1,097.00 339.00 2,862.00
2018-03-31 1,085.00 0.00
2017-12-31 1,095.89 121.56 2,212.02
2017-09-30
2017-06-30 811.60 543.49 1,190.07
2017-03-31 808.00 571.00
2016-12-31 804.54 653.09 500.43
2016-09-30 807.00 901.00
2016-06-30 794.30 862.36 497.58
2016-03-31 407.18 561.78 282.15
2015-12-31 407.18 561.78 282.15
2014-12-31 462.40 282.54 215.67
2013-12-31 400.57 143.82 263.18
2012-12-31 178.20 0.00 74.11
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Metro Bank has an acceptable proportion of non-loan assets held.
  • Metro Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Metro Bank are broadly funded by customer deposits.
  • Metro Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Metro Bank has a sufficient allowance for bad loans.
  • Metro Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Metro Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Metro Bank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MTRO Dividends

 What is Metro Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Metro Bank dividends. Estimated to be 0% next year.
If you bought £2,000 of Metro Bank shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Metro Bank's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Metro Bank's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:MTRO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.1%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:MTRO Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 6.00
2020-12-31 0.00 7.00
2019-12-31 0.00 7.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Metro Bank has not reported any payouts.
  • Unable to verify if Metro Bank's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Metro Bank's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Metro Bank has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Metro Bank's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Metro Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Metro Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Metro Bank has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MTRO Management

 What is the CEO of Metro Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Craig Donaldson
COMPENSATION £1,518,893
AGE 46
TENURE AS CEO 9.3 years
CEO Bio

Mr. Craig Donaldson has been Chief Executive Officer and Executive Director of Metro Bank PLC since March 5, 2010. Mr. Donaldson served as Head of North American institutional foreign exchange sales of NatWest Markets Plc (formerly known as Royal Bank of Scotland Plc) since August 15, 2005. He served as Managing Director of Retail Products and Direct Channels at RBS UK. Mr. Donaldson served as Head of Financial Institutions Foreign Exchange and Prime Brokerage Sales for North America of The Royal Bank of Scotland Plc. He served as the Head of North American Institutional Foreign Exchange Sales of RBS Greenwich Capital. He has joined RBS from Merrill Lynch. He manages Royal Bank of Scotland's Greenwich and Boston sales teams and is responsible for growing its institutional franchise. He serves on the Board of Directors at TheCityUK. He served as a Member of Advisory Board of Metro Bank PLC since February 2017. He holds a degree in Technology and Management from the University of Bradford.

CEO Compensation
  • Craig's compensation has been consistent with company performance over the past year.
  • Craig's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Metro Bank management team in years:

3.7
Average Tenure
49.5
Average Age
  • The tenure for the Metro Bank management team is about average.
Management Team

Vernon Hill

TITLE
Founder & Chairman
COMPENSATION
£497K
AGE
72

Craig Donaldson

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
46
TENURE
9.3 yrs

David Arden

TITLE
CFO, Company Secretary & Executive Director
AGE
49
TENURE
1.1 yrs

Aisling Kane

TITLE
Chief Operating Officer
AGE
49

Danny Harmer

TITLE
Chief People Officer
AGE
50

Mark Price

TITLE
Chief Credit Officer
TENURE
6.3 yrs

Aileen Gillan

TITLE
Chief Risk Officer
AGE
49
TENURE
6.1 yrs

Ian Walters

TITLE
Managing Director of Retail & Business Banking
AGE
55
TENURE
3.7 yrs

Julie Barnsley

TITLE
Head of Private Banking Services
TENURE
3.6 yrs

Mark Stokes

TITLE
Managing Director of Commercial Banking
AGE
55
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Metro Bank board of directors in years:

9.1
Average Tenure
67
Average Age
  • The tenure for the Metro Bank board of directors is about average.
Board of Directors

Vernon Hill

TITLE
Founder & Chairman
COMPENSATION
£497K
AGE
72
TENURE
6.3 yrs

Craig Donaldson

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
46
TENURE
9.1 yrs

Ben Gunn

TITLE
Deputy Chairman
COMPENSATION
£85K
AGE
67

David Arden

TITLE
CFO, Company Secretary & Executive Director
AGE
49
TENURE
1.1 yrs

Gene Lockhart

TITLE
Non-Executive Director
COMPENSATION
£85K
AGE
68
TENURE
9.1 yrs

Stuart D. Bernau

TITLE
Non-Executive Director
COMPENSATION
£85K
AGE
67
TENURE
9.1 yrs

Michael Snyder

TITLE
Senior Independent Director
COMPENSATION
£65K
AGE
67

Keith Carby

TITLE
Non-Executive Director
COMPENSATION
£69K
AGE
71
TENURE
9.1 yrs

James Reuben

TITLE
Member of Advisory Board

Roger Farah

TITLE
Non-Executive Director
COMPENSATION
£59K
AGE
65
TENURE
5.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Metro Bank insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
04. Mar 19 Buy Vernon Hill Individual 01. Mar 19 01. Mar 19 41,000 £9.19 £376,243
04. Mar 19 Buy Craig Donaldson Individual 01. Mar 19 01. Mar 19 11,100 £9.03 £100,259
01. Mar 19 Buy Anna Melis Individual 28. Feb 19 28. Feb 19 990 £10.05 £9,945
13. Nov 18 Buy Michael Snyder Individual 12. Nov 18 12. Nov 18 4,400 £22.56 £99,272
09. Nov 18 Buy Michael Snyder Individual 08. Nov 18 08. Nov 18 6,400 £23.09 £147,776
31. Oct 18 Buy Craig Donaldson Individual 30. Oct 18 30. Oct 18 10,000 £21.76 £217,625
18. Sep 18 Buy Roger Farah Individual 14. Sep 18 14. Sep 18 27,000 £28.02 £756,653
14. Sep 18 Buy Howard Flight Individual 14. Sep 18 14. Sep 18 3,600 £27.84 £100,224
11. Sep 18 Buy Vernon Hill Individual 10. Sep 18 10. Sep 18 30,000 £27.33 £818,700
30. Jul 18 Buy Vernon Hill Individual 24. Jul 18 24. Jul 18 146,113 £34.22 £4,999,987
12. Jun 18 Sell Stuart D. Bernau Individual 11. Jun 18 11. Jun 18 -3,500 £33.65 £-117,780
09. May 18 Sell Howard Flight Individual 08. May 18 08. May 18 -200 £33.32 £-6,664
02. May 18 Sell Howard Flight Individual 01. May 18 01. May 18 -2,000 £33.24 £-66,480
X
Management checks
We assess Metro Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Metro Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MTRO News

Simply Wall St News

The Metro Bank (LON:MTRO) Share Price Is Down 76% So Some Shareholders Are Rather Upset

So spare a thought for the long term shareholders of Metro Bank PLC (LON:MTRO); the share price is down a whopping 76% in the last twelve months. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the unfortunate twelve months during which the Metro Bank share price fell, it actually saw its earnings per share (EPS) improve by 128%.

Simply Wall St -

Why These Fundamentals Make Metro Bank PLC’s (LON:MTRO) More Attractive

As a small-cap finance stock with a market capitalisation of UK£787m, the risk and profitability of Metro Bank PLC (LON:MTRO) are largely tied to the underlying economic growth of the region it operates in GB. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Metro Bank to vulnerabilities. … Unpredictable macro events such as political instability could weaken its financial position which is why it is important to understand how well the bank manages its risk levels.

Simply Wall St -

Should You Worry About Metro Bank PLC's (LON:MTRO) CEO Pay Cheque?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Craig Donaldson's Compensation Compare With Similar Sized Companies. … Our data indicates that Metro Bank PLC is worth UK£941m, and total annual CEO compensation is UK£1.5m.

Simply Wall St -

Is Metro Bank PLC (LON:MTRO) Expensive For A Reason? A Look At The Intrinsic Value

Valuing MTRO, a bank stock, can be daunting since these financial companies have cash flows that are impacted by regulations that are not imposed upon other industries. … For example, banks are required to hold more capital to reduce the risk to depositors.

Simply Wall St -

Have Insiders Been Buying Metro Bank PLC (LON:MTRO) Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in Metro Bank PLC (LON:MTRO). … In the last twelve months there was more buying than selling by Metro Bank insiders

Simply Wall St -

Real Risks To Know Before Investing In Metro Bank PLC (LON:MTRO)

As a small-cap bank with a market capitalisation of UK£1.8b, Metro Bank PLC’s (LON:MTRO) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Metro Bank’s bottom line. … Today we will analyse Metro Bank’s level of bad debt and liabilities in order to understand the risk involved with investing in the bank.

Simply Wall St -

Why Metro Bank PLC (LON:MTRO) Could Be Worth Watching

This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Metro Bank's current trading price of £20.92 reflective of the actual value of the? … Let’s take a look at Metro Bank’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

These Factors Make Metro Bank PLC (LON:MTRO) An Interesting Investment

Metro Bank PLC (LON:MTRO) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of MTRO, it

Simply Wall St -

How Much Did Metro Bank PLC's (LON:MTRO) CEO Pocket Last Year?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … CEOs leading companies of similar size and profitability

Simply Wall St -

What You Must Know About Metro Bank PLC's (LON:MTRO) 1.49% ROE

and want to begin learning the link between company’s fundamentals and stock market performance. … Metro Bank PLC’s (LON:MTRO) most recent return on equity was a substandard 1.49% relative to its industry performance of 7.99% over the past year. … An investor may attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case, knowing the nuts and bolts of the ROE calculation may change that perspective and give you a deeper insight into MTRO's past performance.

Simply Wall St -

MTRO Company Info

Description

Metro Bank PLC, together with its subsidiaries, provides retail and corporate banking services in the United Kingdom. The company offers personal banking products and services, including current and savings accounts; residential mortgages; credit cards and personal loans; and safe deposit box services. It also provides business banking products and services comprising deposit accounts, including business instant access, fixed term, client monies, and business tracker notice accounts; commercial loans, working capital, business credit cards, asset financing, invoice financing, and portfolio buy-to-let; business credit cards, cash management services; and partnership banking services. Metro Bank PLC was incorporated in 2007 and is headquartered in London, the United Kingdom.

Details
Name: Metro Bank PLC
MTRO
Exchange: LSE
Founded: 2007
£791,054,118
97,420,458
Website: http://www.metrobankonline.co.uk
Address: Metro Bank PLC
One Southampton Row,
London,
Greater London, WC1B 5HA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE MTRO Ordinary Shares London Stock Exchange GB GBP 07. Mar 2016
OTCPK MBNK.F Ordinary Shares Pink Sheets LLC US USD 07. Mar 2016
DB 6MB Ordinary Shares Deutsche Boerse AG DE EUR 07. Mar 2016
Number of employees
Current staff
Staff numbers
3,900
Metro Bank employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 23:00
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.