Metro Bank Holdings PLC (MTRO)
Metro Bank Holdings PLC (LSE: MTRO LN) 26 July 2024
Metro Bank Holdings PLC
Legal Entity Identifier: 984500CDDEAD6C2EDQ64
THIS 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. FOR IMMEDIATE RELEASE
Metro Bank confirms Sale of £2.5 billion[1] Residential Mortgage Portfolio to NatWest Group PLC Highlights
Summary Metro 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. The 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. The 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 distribution to Metro Bank's wider mortgage portfolio and has a weighted average current loan to value of c62%. The 4.2% discount on gross book value results in an estimated c£105 million loss on sale because the loans were originated in a lower rate environment. Commenting on the disposal, Daniel Frumkin, Metro Bank’s Chief Executive Officer, said: “The sale of part of our residential mortgage portfolio is earnings, NIM and capital ratio accretive. The sale is in-line with Metro Bank’s strategy to reposition its balance sheet for higher risk adjusted returns on regulatory capital. The additional lending capacity provided by this sale will enable us to continue our shift into high yielding assets in niche and underserved markets and become a specialist lender of choice.”
Enquiries: Metro Bank PLC Investor Relations IR@metrobank.plc.uk Metro Bank Media Relations Mona Patel +44 (0) 7815 506845 Teneo Haya Herbert-Burns/Anthony DiNatale +44 (0)7342 031051/ +44 (0)7880 715975 Important notices This announcement is not intended to, and does not, constitute or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction, whether pursuant to this announcement or otherwise. This announcement is for information purposes only and is not intended to and does not constitute or form part of any offer or invitation to purchase or subscribe for, or any solicitation to purchase or subscribe for any securities in any jurisdiction.
Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. |
ISIN: | GB00BMX3W479 |
Category Code: | DIS |
TIDM: | MTRO |
LEI Code: | 984500CDDEAD6C2EDQ64 |
OAM Categories: | 2.2. Inside information |
Sequence No.: | 336602 |
EQS News ID: | 1954663 |
End of Announcement | EQS News Service |
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source : webdisclosure.com