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Metro Bank – Initiation of coverage: Edison

15:02, 31st October 2024
Edison Investment Research
Company Broker Research
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Banks - LSE - Mcap: £503m - Price: 75p - Initiation
 
METRO BANK - PRIMED FOR GROWTH 

Having successfully refinanced in late 2023, Metro Bank Follow | MTROis making good progress with repositioning its business model towards higher-return commercial and specialist mortgage lending, reducing its cost of funding and shrinking its cost base. It confidently expects to be profitable before year-end and has guided to strong progress thereafter, reaching a mid- to upper-teens percentage return on tangible equity from 2027. Despite a strong performance since the interims, Metro’s shares are far from pricing in the scale of improvement that management is guiding towards.
 

 

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