tiprankstipranks
Trending News
More News >
Metro Bank PLC (GB:MTRO)
LSE:MTRO
Advertisement

Metro Bank (MTRO) AI Stock Analysis

Compare
124 Followers

Top Page

GB:MTRO

Metro Bank

(LSE:MTRO)

Select Model
Select Model
Select Model
Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
Metro Bank's overall stock score reflects a mix of strengths and challenges. Improvements in profitability and strategic growth initiatives are positive, but cash flow issues and inconsistent revenue growth are concerns. Technical indicators suggest stability, while corporate events highlight insider confidence and strategic optimization.

Metro Bank (MTRO) vs. iShares MSCI United Kingdom ETF (EWC)

Metro Bank Business Overview & Revenue Model

Company DescriptionMetro 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, cash, and savings accounts; residential mortgages; credit cards and personal loans; pet insurance; 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, business notice account, client premium and flexible client term deposit, and business loan calculator accounts; business and commercial loans and overdrafts, asset and invoice financing, bounce back loan, and recovery loan scheme. In addition, the company offers private banking services, such as private bank, saving, foreign currency, and money management accounts; and partnership loans, overdrafts, unsecured consumer lending, automotive finance, and digital lending products for SMEs. Metro Bank PLC was incorporated in 2007 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyMetro Bank generates revenue primarily through its net interest income and fee-based services. The bank earns money by offering loans and mortgages to individuals and businesses, charging interest on these financial products. The difference between the interest earned on loans and the interest paid on customer deposits constitutes its net interest income, which is a significant revenue stream. Additionally, Metro Bank earns fees from services such as account maintenance, foreign currency exchange, and transaction processing. The bank also benefits from partnerships with insurance providers and other financial service firms, earning commission-based income. Its focus on customer service and convenience, including extended hours and seven-day branch operations, aims to attract and retain customers, significantly contributing to its earnings.

Metro Bank Financial Statement Overview

Summary
Metro Bank shows improvements in profitability metrics like net profit margin and ROE. However, inconsistent revenue growth and significant cash flow challenges are concerns. The balance sheet highlights potential risks due to moderate leverage and a low equity ratio.
Income Statement
60
Neutral
Metro Bank's revenue has shown volatility, with a decline in the latest year. The gross profit margin is strong at 100% due to the nature of the banking industry. The net profit margin improved to 10.67% in 2024, but revenue growth has been inconsistent, decreasing significantly from 2023 to 2024. The EBIT margin stands at 69.94%, indicating strong operational efficiency. However, the lack of EBITDA data for 2024 prevents a full assessment of EBITDA margin trends.
Balance Sheet
70
Positive
The debt-to-equity ratio is relatively high at 0.57, suggesting moderate leverage. Return on equity (ROE) improved to 3.59% in 2024, indicating better profitability for shareholders. The equity ratio is 6.73%, reflecting a low proportion of equity in the asset base, which might expose the bank to higher financial risk. Overall, the balance sheet shows some strengths but also highlights potential risks due to leverage.
Cash Flow
50
Neutral
The cash flow statement reveals a concerning trend with negative operating cash flow and free cash flow in 2024. The free cash flow growth rate is negative, indicating a decline in cash generation capacity. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting net income into cash. These cash flow issues could impact future operations and investments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue454.80M398.20M615.70M483.60M392.80M300.60M
Gross Profit454.80M398.20M615.70M483.60M392.80M300.60M
EBITDA86.40M0.00573.10M445.40M352.60M257.40M
Net Income106.00M42.50M29.50M-72.70M-248.20M-301.70M
Balance Sheet
Total Assets16.43B17.58B22.25B22.12B22.59B22.58B
Cash, Cash Equivalents and Short-Term Investments2.34B2.81B3.89B1.96B3.57B2.99B
Total Debt874.00M675.00M694.00M571.00M588.00M600.00M
Total Liabilities14.97B16.40B21.11B21.16B21.55B21.29B
Stockholders Equity1.46B1.18B1.13B956.00M1.03B1.29B
Cash Flow
Free Cash Flow-2.06B-1.43B616.00M-1.21B2.81B-583.00M
Operating Cash Flow-2.01B-1.39B628.00M-1.19B2.85B-554.00M
Investing Cash Flow353.00M327.00M1.02B-402.00M-2.25B-956.00M
Financing Cash Flow104.50M-22.00M291.00M-25.00M-29.00M1.51B

Metro Bank Technical Analysis

Technical Analysis Sentiment
Negative
Last Price116.60
Price Trends
50DMA
121.19
Negative
100DMA
123.13
Negative
200DMA
109.74
Positive
Market Momentum
MACD
-1.45
Positive
RSI
39.95
Neutral
STOCH
32.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MTRO, the sentiment is Negative. The current price of 116.6 is below the 20-day moving average (MA) of 121.04, below the 50-day MA of 121.19, and above the 200-day MA of 109.74, indicating a neutral trend. The MACD of -1.45 indicates Positive momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 32.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MTRO.

Metro Bank Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
£145.27M8.966.22%5.70%1.68%-46.69%
68
Neutral
£803.90M7.409.14%-29.12%964.19%
68
Neutral
$680.13M4.53-8.73%-15.79%-212.00%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
63
Neutral
£225.53M9.716.47%2.96%9.09%-9.36%
61
Neutral
£1.37B0.5113.32%14.36%84.11%
61
Neutral
£319.06M-16.30%9.29%-3.77%-147.20%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MTRO
Metro Bank
116.60
48.00
69.97%
GB:CBG
Close Brothers Group
438.20
64.60
17.29%
GB:ARBB
Arbuthnot Banking
900.00
21.69
2.47%
GB:NBS
Nationwide Building Society
13,000.00
-300.00
-2.26%
GB:VANQ
Vanquis Banking Group
121.20
63.90
111.52%
GB:STB
Secure Trust Bank
948.00
164.64
21.02%

Metro Bank Corporate Events

Regulatory Filings and Compliance
Metro Bank Announces Total Voting Rights Update
Neutral
May 1, 2025

Metro Bank Holdings PLC announced that as of April 30, 2025, it has 673,018,224 ordinary shares in issue, each with voting rights, and holds no shares in treasury. This information is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure and Transparency Rules, reflecting the bank’s commitment to regulatory compliance and transparency.

Spark’s Take on GB:MTRO Stock

According to Spark, TipRanks’ AI Analyst, GB:MTRO is a Neutral.

Metro Bank’s overall stock score reflects a mix of strengths and challenges. Improvements in profitability and strategic growth initiatives are positive, but cash flow issues and inconsistent revenue growth are concerns. Technical indicators suggest stability, while corporate events highlight insider confidence and strategic optimization.

To see Spark’s full report on GB:MTRO stock, click here.

Shareholder MeetingsFinancial Disclosures
Metro Bank Releases 2024 Annual Report and Announces 2025 AGM Details
Neutral
Apr 23, 2025

Metro Bank Holdings PLC has published its 2024 Annual Report and Accounts and announced the details for its 2025 Annual General Meeting (AGM). The AGM is scheduled for May 20, 2025, in London, and shareholders are encouraged to participate either in person or by proxy. This announcement underscores the company’s commitment to transparency and shareholder engagement, as it complies with regulatory requirements and offers stakeholders the opportunity to engage with the company’s leadership.

Spark’s Take on GB:MTRO Stock

According to Spark, TipRanks’ AI Analyst, GB:MTRO is a Neutral.

Metro Bank’s overall stock score reflects a mix of strengths and challenges. Improvements in profitability and strategic growth initiatives are positive, but cash flow issues and inconsistent revenue growth are concerns. Technical indicators suggest stability, while corporate events highlight insider confidence and strategic optimization.

To see Spark’s full report on GB:MTRO stock, click here.

Regulatory Filings and Compliance
Metro Bank Announces Total Voting Rights Update
Neutral
Apr 1, 2025

Metro Bank Holdings PLC announced that as of March 31, 2025, it has 673,003,438 ordinary shares in issue, each carrying voting rights, with none held in treasury. This figure is crucial for shareholders to determine their notification obligations under the FCA’s Disclosure and Transparency Rules. This announcement aligns with regulatory requirements and underscores Metro Bank’s commitment to transparency and compliance, which may influence stakeholder trust and market positioning.

Other
Metro Bank Director Acquires Significant Shareholding
Positive
Apr 1, 2025

Metro Bank Holdings PLC announced a transaction involving the purchase of 100,000 ordinary shares by Non-Executive Director Nicholas Winsor and Elvira Winsor, conducted on the London Stock Exchange. This transaction reflects insider confidence in the company’s prospects and could potentially impact stakeholder perceptions positively.

Shareholder MeetingsBusiness Operations and Strategy
Metro Bank Shareholders Approve Key Resolutions at General Meeting
Neutral
Mar 18, 2025

Metro Bank Holdings PLC announced the results of its General Meeting held on March 18, 2025, where shareholders passed two key resolutions. The first resolution, an ordinary resolution, authorized the allotment of shares related to Contingent Convertible Securities, while the second, a special resolution, allowed the dis-application of pre-emption rights for these securities. These resolutions are significant as they enable the company to manage its capital structure more flexibly, potentially impacting its financial strategy and shareholder value.

Other
Metro Bank Executive and Associates Acquire Shares, Signaling Confidence
Positive
Mar 3, 2025

Metro Bank Holdings PLC has announced a series of share purchases by its Executive Director, Marc Page, and individuals closely associated with him. The transactions, conducted on the London Stock Exchange, involved the purchase of ordinary shares at varying prices, with a total aggregated volume of 587,218 shares at an average price of 0.83627 GBP. This move indicates a potential increase in confidence by the management in the company’s future performance and could positively impact stakeholder perceptions.

Regulatory Filings and Compliance
Metro Bank Announces Total Voting Rights Update
Neutral
Mar 3, 2025

Metro Bank Holdings PLC announced that as of February 28, 2025, it has 672,979,957 ordinary shares in issue, each carrying voting rights, with no shares held in treasury. This figure is crucial for shareholders to calculate their interests under the FCA’s Disclosure and Transparency Rules, reflecting the bank’s compliance with regulatory requirements and its transparent corporate governance practices.

Private Placements and FinancingShareholder Meetings
Metro Bank Prepares for Potential Capital Raise with General Meeting Notice
Neutral
Feb 28, 2025

Metro Bank Holdings PLC has announced the publication of a Notice of General Meeting to consider the allotment of shares and the disapplication of pre-emption rights for potential future regulatory capital raises. This strategic move aims to optimize the company’s capital structure and prepare for possible access to capital markets, reflecting its ongoing efforts to drive growth and strengthen its market position.

Business Operations and StrategyFinancial Disclosures
Metro Bank Achieves Profitability with Strategic Growth and Balance Sheet Optimization
Positive
Feb 27, 2025

Metro Bank Holdings PLC reported a statutory profit after tax of £42.5 million for the year ended December 31, 2024, marking a significant turnaround with a strong focus on profitability and strategic growth. The bank has optimized its balance sheet by selling £2.5 billion in prime residential mortgages and £584 million in unsecured personal loans, which has improved its capital position and reduced funding costs. The company has also achieved a net interest margin of 2.65%, exceeding its guidance. Metro Bank’s strategy to pivot towards higher-margin business and specialist mortgages has created strong momentum, with new loan originations growing by 71% in 2024. The bank plans to open new stores in Chester, Gateshead, and Salford to further support its growth in corporate, commercial, and SME banking.

Business Operations and Strategy
Metro Bank Sells £584 Million Loan Portfolio to Enhance Growth
Positive
Feb 26, 2025

Metro Bank Holdings PLC has announced the sale of a £584 million unsecured personal loan portfolio, aligning with its strategy to reposition its balance sheet and enhance risk-adjusted returns. This transaction is expected to improve the bank’s CET1 and MREL ratios, allowing it to optimize its balance sheet and focus on higher-yielding lending opportunities. The sale is capital accretive, generating an estimated £11 million gain, and positions Metro Bank for future growth as a specialist lender.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025