(Alliance News) - Challenger bank Metro Bank PLC on Tuesday completed the sale of a GBP3.04 billion owner occupied residential mortgage portfolio to FTSE 100-listed NatWest Group PLC.
The deal was first agreed in mid-December.
The portfolio consists of primarily repayment mortgages with an average remaining fixed-rate term of about 2.5 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 about 60%.
On completion, the disposal is expected to result in a September 30 pro-forma improvement in Metro Bank's total capital plus MREL ratio of 400 basis points to 24.2% from 20.2%, and a September 30 pro-forma CET1 ratio of 16.3%.
Earlier Tuesday, Metro Bank said it has acquired at par value a portfolio of peer-to-peer loans invested through the RateSetter platform.
Metro Bank acquired RateSetter for up to GBP12.0 million in cash back in August.
The loan book, the lender explained on Tuesday, was acquired from peer-to-peer investors who have invested through the RateSetter platform. Metro Bank will fork out up to GBP384 million for the portfolio of unsecured consumer loans.
The portfolio has a total book value of GBP384 million with an average total gross yield of around 8%.
Shares in Metro Bank closed 4.0% higher at 122.50 pence in London on Tuesday.
By Paul McGowan; paulmcgowan@alliancenews.com
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Metro Bank (MTRO)
Natwest (NWG)