Business
Mortgage Portfolio Acquisition
Mortgage Portfolio Acquisition.
About this update from Metro Bank Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 9351G Metro Bank PLC 02 June 2017 \n\n2 June 2017\nMETRO BANK PLC\nMORTGAGE PORTFOLIO ACQUISITION\nMetro Bank plc announces that it has completed the purchase of a portfolio of UK mortgages (the \"Portfolio\") from Cerberus European Residential Holdings B.V. for £ 596.7m\nAll lending in the Portfolio is secured on property, well diversified across the UK, and has a similar credit risk profile to Metro Bank's current mortgage book.\nThe Portfolio consists of approximately 92% buy to let mortgages, with the remainder being owner occupied. The Portfolio has a weighted average seasoning of c.10 years and the weighted average loan to value is c.70%, with a current expected pay rate of c.1.6% principally linked to the Bank of England base rate.\nThe consideration of £596.7m represents the value at which the acquired mortgages will be taken on to the Bank's balance sheet and is being financed using cash from existing resources. The Portfolio is being acquired at a discount to par.\nCraig Donaldson, CEO, said: \"Our lending and deposit growth has gone from strength to strength and the acquisition of this high-quality loan Portfolio supports our high-growth, organic business model as we track ever closer to our 2020 guidance. In particular the acquisition increases the Loan to Deposit ratio to c.78% (2020 guidance c.80%). The Portfolio complements our existing mortgage book and demonstrates our willingness and ability, helped by our strong deposit growth, to take advantage of opportunities as they arise.\"\n \nThe information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (\"MAR\") and was authorised for release by Michael Brierley, Chief Financial Officer. \n \n-Ends-\n \nFor more information, please contact:\n \nMetro Bank PLC Investor Relations\nJo Roberts\n+44 (0) 20 3402 8900\[email protected]\n \nTulchan Communications\nMartin Pengelley/ Latika Shah\n+44(0)20 7353 4200\[email protected]\n \nAbout Metro Bank\nMetro Bank operates retail hours, not banking hours. It is open seven days a week (8am- 8pm Monday to Friday, 8am - 6pm Saturday, 11am - 5pm Sunday and bank holidays), every day of the year apart from Easter Sunday, Christmas Day and New Ye...