Does this calc include customer deposits as I can't understand it ? Look along the net debt line at bottom of stock report for the £2bn figure .
Cash is £2bn. Pretty much all banks will hold significant amounts of cash and short-term deposits to manage their liquidity.
Customer deposits would be considered a liability - in this case deposits are just short of £15bn.
Due to tight regulations, banks are going to have fairly decent balance sheets and gearing in most should be around 10-15%.
In the case of Metro Bank (LON:MTRO) , it is priced as a growth story, it does appear to be delivering however competition in the mortgage market is tricky. Agreed that banks can pass on the cost of rising interest rates, but it also increases the cost of capital - so i struggle to see the value here.
