Last checked at (Sharecast News) - Metro Bank has bought a portfolio of loans from peer-to-peer investors who have invested through the RateSetter platform - a wholly-owned subsidiary of the bank - for up to £384m in cash, as it looks to increase its exposure to unsecured lending.
The exact amount is expected to be less as the portfolio will continue to amortise between now and expected completion in April.
The portfolio had an aggregate book value of £384m as at 29 January, with an average total gross yield of circa 8%. It consists mainly of unsecured consumer loans and is amortising rapidly, with an average weighted loan term of two years remaining, Metro said, adding that is a well-seasoned portfolio delivering a consistent credit performance.
Chief executive officer Daniel Frumkin said: "The addition of this portfolio to our loan book is a further step towards growing our presence in the unsecured lending market. It builds on our acquisition of the RateSetter platform - a well-established business with a strong technology platform that is enabling us to rapidly expand our unsecured lending offering.
"We continue to deliver against Metro Bank's strategic priority of optimising our balance sheet and asset mix, whilst positioning ourselves to better serve customer needs as the UK's best community bank."
At 0920 GMT, the shares were up 4.8% at 123.35p.
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