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Metro Bank confirms Sale of £2.5 billion Resi...
Metro Bank confirms Sale of £2.5 billion Resi....
About this update from Metro Bank Holdings Plc
[{"type":"text","content":"\n \n \n \n\n\t\n\n\n\n\n\n\n\n\n\n\n\nMetro Bank Holdings PLC (MTRO)\n\n\n\n\n\n\nMetro Bank confirms Sale of £2.5 billion Residential Mortgage Portfolio to NatWest Group PLC 26-Jul-2024 / 07:00 GMT/BST\n\n\n Metro Bank Holdings PLC (LSE: MTRO LN)\n\n26 July 2024\n\n \n\n \n\nMetro Bank Holdings PLC\n\n \n\nLegal Entity Identifier: 984500CDDEAD6C2EDQ64\n\n \n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK VERSION OF REGULATION (EU) NO. 596/2014 ON MARKET ABUSE, AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.\n\nFOR IMMEDIATE RELEASE \n\n \n\nMetro Bank confirms Sale of £2.5 billion[1] Residential Mortgage Portfolio to NatWest Group PLC\n\nHighlights\n\nSale allows acceleration of asset rotation\n Earnings are improved in 2024 and 2025 from this sale\n NIM increases post transaction completion\n TFSME[2] to be repaid from proceeds\n Pro forma MREL ratio improves by c114bps upon transaction completion\n Mortgages being sold were originated in a lower rate environment, meaning the mortgage sale results in a day one loss of c£105m at completion\nSummary\n\nMetro Bank today confirms entering into an agreement to sell a portfolio of approximately £2.5 billion prime residential mortgages (the “Portfolio”) to NatWest Group PLC (\"NatWest\") for a cash consideration[3] of up to £2.4 billion. On completion[4] of the transaction, the sale is expected to reduce risk weighted assets by c£824m, and result in a 31 December 2023 pro-forma improvement in Metro Bank's total capital plus MREL ratio of c114bps from 22.0% to 23.1% and CET1 ratio by c5bps. \n\nThe sale of the Portfolio is in line with Metro Bank's strategy to reposition its balance sheet and enhance risk-adjusted returns on capital. The transaction is earnings, NIM and capital ratio accretive, and the sale creates additional lending capacity to enable Metro Bank to continue its asset rotation towards higher yielding commercial, corporate, SME lending and specialist mortgages.\n\nThe Portfolio has a gross book value of £2.5 billion with a weighted average rate of c3.79%. It consists of primarily repayment mortgages with an average remaining fixed-rate term of c2.3 years. The Portfolio has a similar geographic distribut...