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Metro Bank

OTCPK:MBNK.F
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MBNK.F
OTCPK
£816M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Metro Bank PLC, together with its subsidiaries, provides retail and commercial banking services in the United Kingdom. The last earnings update was 78 days ago. More info.


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  • Metro Bank has significant price volatility in the past 3 months.
MBNK.F Share Price and Events
7 Day Returns
-4.6%
OTCPK:MBNK.F
-1%
US Banks
0.6%
US Market
1 Year Returns
-86.5%
OTCPK:MBNK.F
-6.5%
US Banks
4.1%
US Market
MBNK.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Metro Bank (MBNK.F) -4.6% -15.2% -44.5% -86.5% -76% -
US Banks -1% 2.4% -1.5% -6.5% 44.7% 46%
US Market 0.6% 3.8% 2.8% 4.1% 37.3% 42.5%
1 Year Return vs Industry and Market
  • MBNK.F underperformed the Banks industry which returned -6.5% over the past year.
  • MBNK.F underperformed the Market in United States of America which returned 4.1% over the past year.
Price Volatility
MBNK.F
Industry
5yr Volatility vs Market

MBNK.F 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.

OTCPK:MBNK.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 12 analysts.
= Stable Book Value * Return on Equity
= £10.66 * 3.3%
£0.36
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. £10.66
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 OTCPK:MBNK.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.594 (1 + (1- 19%) (168.6%))
1.272
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.272 * 6.65%)
11.19%

Discounted Cash Flow Calculation for OTCPK:MBNK.F 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.

OTCPK:MBNK.F Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (3.3% – 11.19%) * £10.66)
£-0.84
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £-0.84 / (11.19% - 2.73%)
£-9.88
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £10.66 + £-9.88
£0.78
OTCPK:MBNK.F Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:MBNK.F represents 1.28118x of LSE:MTRO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.28118x
Value per Share
(Listing Adjusted, USD)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 0.78 x 1.28118
$1.00
Value per share (USD) From above. $1.00
Current discount Discount to share price of $6.06
= -1 x ($6.06 - $1.00) / $1.00
-508%

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

  • The current share price of Metro Bank is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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
OTCPK:MBNK.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.24
LSE:MTRO Share Price ** LSE (2019-07-17) in GBP £4.73
United States of America Banks Industry PE Ratio Median Figure of 593 Publicly-Listed Banks Companies 12.75x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.98x

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

** Primary Listing of Metro Bank.

OTCPK:MBNK.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 4.73 ÷ 0.24

19.52x

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 US Banks industry average.
  • Metro Bank is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Metro Bank's expected growth come at a high price?
Raw Data
OTCPK:MBNK.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.52x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
50.2%per year
United States of America Banks Industry PEG Ratio Median Figure of 270 Publicly-Listed Banks Companies 1.28x
United States of America Market PEG Ratio Median Figure of 2,122 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

OTCPK:MBNK.F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.52x ÷ 50.2%

0.39x

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
OTCPK:MBNK.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £14.06
LSE:MTRO Share Price * LSE (2019-07-17) in GBP £4.73
United States of America Banks Industry PB Ratio Median Figure of 593 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,241 Publicly-Listed Companies 1.81x
OTCPK:MBNK.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 4.73 ÷ 14.06

0.34x

* 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 US 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.

MBNK.F Future Performance

 How is Metro Bank expected to perform in the next 1 to 3 years based on estimates from 13 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
50.2%
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 2.7%.
Growth vs Market Checks
  • Metro Bank's earnings growth is expected to exceed the United States of America market average.
  • Metro Bank's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:MBNK.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:MBNK.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 50.2%
OTCPK:MBNK.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 16.7%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 2.7%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
OTCPK:MBNK.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:MBNK.F Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 895 207 4
2022-12-31 752 113 4
2021-12-31 631 59 13
2020-12-31 530 35 13
2019-12-31 458 18 13
OTCPK:MBNK.F Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 412 -670 23
2018-12-31 396 153 27
2018-09-30 370 28
2018-06-30 344 1,283 23
2018-03-31 315 16
2017-12-31 286 2,293 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

*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 16.7% 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
OTCPK:MBNK.F 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 13 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.

OTCPK:MBNK.F Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.03 1.32 0.79 4.00
2022-12-31 0.66 0.86 0.55 4.00
2021-12-31 0.39 0.70 0.16 9.00
2020-12-31 0.21 0.40 0.12 10.00
2019-12-31 0.12 0.20 0.04 11.00
OTCPK:MBNK.F Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.24
2018-12-31 0.29
2018-09-30
2018-06-30 0.26
2018-03-31 0.18
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

*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 States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.

MBNK.F 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 is less than its 5-year average (44% vs 89.5%)
  • Metro Bank's earnings growth has exceeded the US Banks industry average in the past year (44% vs 40.8%).
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.

OTCPK:MBNK.F Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 412.00 23.20 103.00
2018-12-31 396.10 27.10 95.10
2018-09-30 370.11 28.18 103.10
2018-06-30 344.01 22.88 87.20
2018-03-31 314.72 16.11 82.60
2017-12-31 285.60 10.80 72.60
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 US 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 2/6, 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.

MBNK.F 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.

OTCPK:MBNK.F Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,406.00 1,375.00 3,128.00
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 1,097.00 121.00 2,212.00
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.

MBNK.F 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
OTCPK:MBNK.F 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 13 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 479 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

OTCPK:MBNK.F Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 8.00
2020-12-31 0.00 8.00
2019-12-31 0.00 8.00

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 States of America.
X
Income/ dividend checks
We assess Metro Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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.

MBNK.F 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 £800,944
AGE 47
TENURE AS CEO 9.5 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, both up more than 20%.
  • Craig's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

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

3.9
Average Tenure
50.5
Average Age
  • The tenure for the Metro Bank management team is about average.
Management Team

Vernon Hill

TITLE
Founder & Chairman
COMPENSATION
£505K
AGE
73

Craig Donaldson

TITLE
CEO & Executive Director
COMPENSATION
£801K
AGE
47
TENURE
9.5 yrs

David Arden

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
£1M
AGE
50
TENURE
1.3 yrs

Aisling Kane

TITLE
Chief Operating Officer
AGE
50

Danny Harmer

TITLE
Chief People Officer
AGE
51

Mark Price

TITLE
Chief Credit Officer
TENURE
6.5 yrs

Aileen Gillan

TITLE
Chief Risk Officer
AGE
50
TENURE
6.3 yrs

Ian Walters

TITLE
Managing Director of Retail & Business Banking
AGE
56
TENURE
3.9 yrs

Julie Barnsley

TITLE
Head of Private Banking Services
TENURE
3.8 yrs

Mark Stokes

TITLE
Managing Director of Commercial Banking
AGE
56
TENURE
3.6 yrs
Board of Directors Tenure

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

5.4
Average Tenure
68
Average Age
  • The tenure for the Metro Bank board of directors is about average.
Board of Directors

Vernon Hill

TITLE
Founder & Chairman
COMPENSATION
£505K
AGE
73
TENURE
6.6 yrs

Craig Donaldson

TITLE
CEO & Executive Director
COMPENSATION
£801K
AGE
47
TENURE
9.3 yrs

Ben Gunn

TITLE
Deputy Chairman
COMPENSATION
£91K
AGE
68
TENURE
0.3 yrs

David Arden

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
£1M
AGE
50
TENURE
1.3 yrs

Gene Lockhart

TITLE
Non-Executive Director
COMPENSATION
£99K
AGE
69
TENURE
9.3 yrs

Roger Farah

TITLE
Independent Non-Executive Director
COMPENSATION
£71K
AGE
66
TENURE
5.4 yrs

Michael Snyder

TITLE
Senior Independent Director
COMPENSATION
£71K
AGE
68
TENURE
0.3 yrs

Stuart D. Bernau

TITLE
Non-Executive Director
COMPENSATION
£91K
AGE
68
TENURE
9.3 yrs

James Reuben

TITLE
Member of Advisory Board

Rachael Robathan

TITLE
Member of Advisory Board
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
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 $12.15 $497,590
04. Mar 19 Buy Craig Donaldson Individual 01. Mar 19 01. Mar 19 11,100 $11.95 $132,594
01. Mar 19 Buy Anna Melis Individual 28. Feb 19 28. Feb 19 990 $13.35 $13,220
13. Nov 18 Buy Michael Snyder Individual 12. Nov 18 12. Nov 18 4,400 $29.01 $127,622
09. Nov 18 Buy Michael Snyder Individual 08. Nov 18 08. Nov 18 6,400 $30.27 $193,759
31. Oct 18 Buy Craig Donaldson Individual 30. Oct 18 30. Oct 18 10,000 $27.70 $276,989
18. Sep 18 Buy Roger Farah Individual 14. Sep 18 14. Sep 18 27,000 $36.66 $989,775
14. Sep 18 Buy Howard Flight Individual 14. Sep 18 14. Sep 18 3,600 $36.42 $131,103
11. Sep 18 Buy Vernon Hill Individual 10. Sep 18 10. Sep 18 30,000 $35.60 $1,066,446
30. Jul 18 Buy Vernon Hill Individual 24. Jul 18 24. Jul 18 146,113 $44.97 $6,570,458
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.

MBNK.F News

Simply Wall St News

MBNK.F Company Info

Description

Metro Bank PLC, together with its subsidiaries, provides retail and commercial 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 business bank, commercial and community current, foreign currency, and insolvency practitioner accounts; deposit accounts, including business and community instant access deposit and fixed term deposit, client premium and flexible client term deposit, and business notice accounts; business and commercial loans and overdrafts, business credit cards, asset financing, invoice financing, and enterprise finance guarantee scheme. Metro Bank PLC was incorporated in 2007 and is headquartered in London, the United Kingdom.

Details
Name: Metro Bank PLC
MBNK.F
Exchange: OTCPK
Founded: 2007
£1,013,557,325
172,420,458
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: 2019/07/18 01:00
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
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.