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Metro Bank Confirms Sale of £584 million Unse...
Metro Bank Confirms Sale of £584 million Unse....
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 £584 million Unsecured Personal Loan Book 26-Feb-2025 / 07:00 GMT/BST\n\n\n Metro Bank Holdings PLC (LSE: MTRO LN)\n\n26 February 2025\n\n \n\n \n\nMetro Bank Holdings PLC (the \"Company\")\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\n \n\nFOR IMMEDIATE RELEASE \n\n \n\n \n\nMetro Bank Confirms Sale of £584 million[1] Unsecured Personal Loan Book \n\nHighlights\n\nSale allows acceleration of asset rotation\n Pro-forma[2] CET1 ratio improves by c81bps upon completion\n Pro forma[2] MREL ratio improves by c129bps upon completion\n Day one gain on sale[3] c£11 million\n Guidance unaffected given very limited impact on earnings and NIM\nSummary\n\nMetro Bank today confirms entering into an agreement to sell a portfolio of approximately £584 million performing unsecured personal loans (the “Portfolio”)[4]. The transaction is expected to result in a 30 June 2024 pro-forma improvement in Metro Bank's CET1 ratio by c81bps and total capital plus MREL ratio of c129bps from 22.2% to 23.5%.\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 capital accretive and 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 £584 million with a weighted average rate of c5.3%. It consists of performing unsecured personal loans with an average remaining fixed-rate term of c2.4 years. \n\...