|Bid||2.2660 x 100000|
|Ask||2.3000 x 100000|
|Day's range||2.3120 - 2.3120|
|52-week range||1.8530 - 17.4800|
|Beta (5Y monthly)||0.56|
|PE ratio (TTM)||13.84|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
(Bloomberg) -- Revolut Ltd. has raised $500 million in a funding round that values the London financial-technology firm at $5.5 billion, making it one of Europe’s most valuable fintech startups despite still being loss-making.The company will use the cash for product development and to increase banking operations across Europe, it said in a statement on Tuesday. Revolut said it plans to begin making loans for retail and business banking customers, expand its savings accounts beyond the U.K., and improve its customer service.“Our focus is on rolling-out banking operations in Europe, increasing the number of people who use Revolut as their daily account, and striving towards profitability,” Chief Executive Officer Nik Storonsky said in the statement.The market for financial technology firms offering an alternative to traditional banks is fiercely competitive with Revolut going up against other established rivals, such as Monzo and Starling Bank. German mobile bank N26 GmbH said earlier this month it would close all U.K. mobile banking accounts in April. The firm, backed by billionaires Peter Thiel and Li Ka-Shing, blamed Brexit for the withdrawal.Swedish payments and banking firm Klarna became the most valuable European fintech startup in August after new funding pushed its post-money valuation to $5.5 billion.Read more here: Why Peter Thiel’s Fintech Is Fleeing Britain: Elisa MartinuzziRevolut reported revenue of 58.2 million pounds ($63 million) in 2018, the last period it released financial results, up from 12.8 million pounds in 2017. Its loss for the year more than doubled to 32.8 million pounds. The firm said the number of daily active customers grew by 380% last year.The company is targeting 100 million customers in the next five years -- up from over 10 million now -- and will focus on increasing daily accounts and expanding outside of Europe, Storonsky said in an interview on Bloomberg Television on Tuesday.“Part of the $500 million that we raised, we’re going to spend on creating new features for daily users,” he said.The startup was last valued at $1.7 billion when it raised $250 million in April 2018. It also faced regulatory scrutiny following an alleged compliance lapse that could have allowed illegal transactions on its app.Revolut bolstered its executive ranks in 2019, hiring former Metro Bank Plc finance director Dave MacLean as chief financial officer and naming Standard Life Aberdeen executive Martin Gilbert as chairman.The company will likely add another 1,000 employees by the end of the year to the 2,000 it has now, Storonsky said in the interview. About 200 of those new hires will be in the compliance department, he said.The funding brings the total Revolut has raised to $836 million and was led by U.S. venture capital firm TCV, which also invested in London-based fintech WorldRemit, which helps people send money across borders, last year.(Updates with CEO comments from interview starting in seventh paragraph.)To contact the reporter on this story: Amy Thomson in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Giles Turner at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Frumkin, who joined Metro Bank last September as chief transformation officer, stepped in for former CEO Craig Donaldson earlier this year. Before joining Metro, Frumkin, 55, spent eight years at The Bank of N.T. Butterfield & Son Ltd, a community bank based in Bermuda, the company said.
Cohen and two private investment vehicles cut their stake in the lender on Feb. 5 to 4.97% from 5.81%, a filing showed on Monday. Cohen, once Metro Bank's biggest backer, and associated entities held 9.86% of the company's shares before Nov. 22.
Britain's Metro Bank has hired a law firm to help it investigate payments routed through the bank that breached U.S. sanctions, a regulatory filing showed. One Metro bank customer was subject to U.S. sanctions on Cuba, while another received payments from Iran, the bank said. The Evening Standard newspaper reported on Tuesday that Metro Bank appointed law firm DLA Piper to conduct the review, which will look into how the lender's internal controls were breached.
Jabran Khan explores Metro Bank’s rise from challenger bank pioneer to accounting scandals, leadership crisis and plummeting share prices.The post Why I think Metro Bank’s share price will continue to struggle appeared first on The Motley Fool UK.
(Bloomberg Opinion) -- A simple lesson we should have learned from the financial crisis is that complexity begets abuse, and undermines stability. Yet the key measure we use to determine banks’ health is so fiendishly difficult to understand that outsiders have no choice but to accept what we’re told by the lender.That’s the conclusion of a broad U.K. government review of the audit industry unveiled this week. Donald Brydon, the former chairman of London Stock Exchange Plc who ran the review, considered whether accountants should be brought in to verify how banks calculate the all important “risk-weighted asset” measure. Alarmingly, he concluded that there was no point because even trained auditors would struggle to get their heads around these calculations, unless banks employed an army of them. If that’s true, then what hope for ordinary shareholders or bank supervisors?After all, we’re talking here about the figure that lenders and their regulators use to assess how much capital they need to hold against the risks they’re taking. Worries about divergences in how banks work out risk-weighted assets have already prompted new rules to limit the degree to which they can use their own models. The world’s leading financial regulators have urged the audit profession to help , as has the Institute for Chartered Accountants in England and Wales.Unfortunately, Brydon believes that getting auditors involved is simply not viable. Tucked into his 138-page report, the City grandee concludes that because the models on which risk-weighted asset calculations are based “can run to many hundreds of pages of explanation,” getting auditors to provide opinion on their truth and fairness would "involve a disproportionate additional cost.” And at a practical level, “the depth of skills necessary to undertake such separate assurance are not obviously widespread and readily available,” in the accounting profession, says Brydon. His alternative solution is to get the U.K. banking supervisor, the Prudential Regulation Authority, to issue a letter of comfort as it already reviews the banks’ risk-weighted asset models. But given his admission that this task is beyond the audit profession, it’s not clear why just writing a letter would make bank calculations any more transparent.Moreover, Brydon’s conclusions beg a number of questions. Isn’t the complexity of risk-weighted calculations precisely the reason they should be reviewed externally? If auditors lack the skills, where else is the expertise? Ultimately, shouldn’t we be striving to make these fundamental measures accessible to a wider pool of experts? How can we trust that banks are as safe as they claim to be, and aren’t just gaming the system?This year alone there have been a number of examples of dubious risk-weighted asset calculations. The U.K.’s Metro Bank Plc is being probed by regulators for assigning a weighting that was too low for some assets, an error that — once fixed — led to the bank raising capital. Citigroup Inc. was fined in Britain for inaccurately reporting its capital and liquidity in part because the firm underestimated its risk-weighted assets. Most recently, Coventry Building Society, a U.K. lender, corrected risk weights that inflated its financial strength for years. (The firm was still comfortably above regulatory requirements).While none of these incidents has threatened the viability of any one company, let alone the financial system, institutions are tripping up on an essential reporting requirement that’s too complicated to unpack. As regulatory failings go, this one might easily have dangerous consequences.To contact the author of this story: Elisa Martinuzzi at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Metro Bank had said in October that Hill, who quit as chairman but agreed to accept an honorary position, would remain a non-executive director of the bank until Dec. 31. Chief Executive Officer Craig Donaldson is also leaving the company after a torrid year in which the British lender was engulfed in a damaging accounting scandal that wiped 90% off its market value.
Donaldson, who has been in the role since 2009 and is one of Britain's longest-serving bank CEOs, will be succeeded on an interim basis by Chief Transformation Officer Dan Frumkin from the start of next year, Metro said in a statement. Metro said in October its chairman and founder Vernon Hill had quit two months early and warned it may have to curb its growth plans after posting a third quarter loss. The bank is under investigation by regulators after disclosing it had under-reported its exposure to higher-risk loans by almost 1 billion pounds ($1.28 billion).
Metro Bank chief executive Craig Donaldson is leaving after a torrid year in which the British lender was engulfed in a damaging accounting scandal that has also cost it its chairman and wiped 90% off its market value. Donaldson, who has been in the role since 2009 and is one of Britain's longest-serving bank CEOs, will be succeeded on an interim basis by Chief Transformation Officer Dan Frumkin from the start of next year, Metro said in a statement. The bank is under investigation by regulators after disclosing it had under-reported its exposure to higher-risk loans by almost 1 billion pounds ($1.28 billion).
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The...