Metro Bk Hldgs Plc (MTRBF) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. Welcome to Metro Bank's half-year results presentation. I'm Daniel Frumkin, the CEO, and with me today is Christina, our CFO, who's been filling in admirably while we wait for Mark Page to join us in September. Today we're going to go through a bit of an overview. I'm not going to talk about the existing financial results for the first half. I'll let Christina do that. I would just say they're exactly as we expected and in line with the transitional year we discussed at our year-end results. What I'm going to spend a lot of time on is talking about the future, the future we see for Metro and the future we see for all stakeholders. Then Christine will come up and talk a bit about financial performance, and I'll come back and talk a little bit about the path forward. So let's talk about what we see in the future. So let's start with the biggest thing. We will be profitable during quarter four. The turnaround, the transitional year, whatever phrase you like to use, is coming to completion. We will return to sustainable profitability during quarter four 24. In addition, we're increasing our guidance on return on tangible equity for the next three years. So we'll deliver mid to upper single digits next year, return on tangible equity, double digits in 26, and we will get to mid to upper teens thereafter. We do that by driving a much higher NIM. So NIM approaches this year 2.5%, next year 3.25%, and 26%, 4%. And you say moving from our quarter 2 NIM of 174 basis points to 400 basis points in 26, that's a big jump. That's 226 basis point increase in NIM in 2.5 years. A third of it Roughly 70 basis points comes from two things and two things alone. The sale of the mortgage portfolio is very NIM accretive, and the rolling off of the Treasury portfolio ...