Metro Bank Lloyds Takeover Rumours

So it seems a rumour has been started; I don’t know how to feel about this as a Metro customer myself. Will Lloyds kill the brand or integrate it, keep or loose the branch network or will this even happen at all!? Who knows.

Metro has been struggling, a takeover seems a logical choice. It has still got a place and potential so it would be a good investment. Not sure what Lloyds could bring though, they do like operating brands, so no reason they would kill the Metro brand.

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I’m surprised metro are struggling considering the rapid expansion they are currently undergoing

Metro Bank hasn’t really recovered from the accounting scandal. The £300m bond it raised is a whopping 9.5% so any new mortgage business isn’t profitable. Metro is also trading at less than a quarter of book value, so it is an easy takeover target.

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What if Goldman Sachs (Marcus) bought Metro instead?

They’d instantly get a presence on the high street and be able to expand beyond their current set of products (savings account) into actual current accounts, credit cards, loans, …

They’d also have a ringfenced entity already (and not have to subject their current UK banking licence to it) via this acquisition.

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I would have thought the regulators would have issues if Lloyd’s wanted to take Metro over - purely on the combined market share if nothing else.

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I doubt they would, since Metro has such a small market share that adding it on to the existing (admittedly huge) market share of Lloyds Banking Group would make almost no difference, particularly if they retain the brand.

They would presumably also welcome a takeover from a strong banking group, if only to sort out the governance issues which seem to have plagued Metro and plug the funding hole which seems to be appearing.

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RBS and HSBC are also interested in buying Metro Bank according to media reports.

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HSBC would benefit the most, it would have three brands all different, none actually competing with each other in any real sense.

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You’d think they’ve learned from their acquisition of ABN Amro.

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Almost sounds as if RBS want their money back…

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:rofl::rofl::rofl: OK, that made me laugh out loud!