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Yes, sorry it keeps posting 30 billion when I meant 3 billion grrrr ...but thanks for the correction.

Mind you, the question remains the same cyber doggy, what did Metro do with the first sale of 30% (3 bill) and what will they do do with the second sale of 30% (3 bill)...I'm not chucking anymore £££ at this barn door of an investment, until I understand tbh

Https://www.mortgagestrategy.co.uk/news/santander-mortgage-lending-slumps-10bn-in-2023/

Santander are ruthless, they aim to be wold top 5 and as mentioned earlier, I was involved in clearing out anyone else from bidding for Abbey National in the 97-2002 beauty parade.

Santander £10 billion down this year will gird their loins for a 30.2 billion purchase imho. What would metro do with the 30 billion funds is the more worrying question, they've hardly impressed since 2019 despite some chunky asset sales!!!

Ps Meant 3.2 billion plus the bijoux 74 million profit.

Ps Meant 32 billion plus the bijoux 74 million profit.

TooGoodTD.

Thanks for your insight.

Help me out please as to what happened hitherto, and this as to what will happen with the new 30% sale going fwd.

On the 2020 sale there was no third party to settle with and only against its deposit book....SO....what did they do or buy with the £32 million they achieved three years ago.

Key to Metro bank success is how they spend the income from selling the silverware for me.

Thanks and Rgds

The FT stated that the 'Profit' (free cash after paying back the wholesale mkt) was £84,000,000 on the £3 billion sale of circa 30% of their mortgage book in 2020.

A further 3 billion (circa another 30% !) Would elicit the same, or more likely quite a bit lower, given their rising delinquent loan ratios (customer up to 3 months in arrears) and current economic climate and interest rate scenario.

That's not a lot of free cash to do much with and why they might just hang onto it given the opportunity cost .

No.... last time they sold 3 billion (which netted down was only a few hundred million profit) of course, it was broadly absorbed in feeding the hunger of their expensive branch network and staff salaries/bonuses (on the profit and loss) to keep the business running/pay regulator fines for 3 years (21-23).... Will happen again......

Imho our 53% man has bought a discounted 'controlling interest' banking licence (with albeit a lot of govt subsidies) and not much else.

yes he's a smart cooky, but i do wonder if this is a bridge too far.... as commercial lending doesn't need s****y high ceilings, marble and dog bowls. time will tell. daft spell checker blackberry not blueberry of course ;-)

my bona fides are that i owned the lead consultation company for santander in the takeover or abbey national in mid 90's....that was not nearly as marginal a risk decision imho.

As Tom Peters once said 'you can't shrink your way to greatness'.

We have 2 Large sell offs of Mortgage book in last 3 years, and in the last 10 days v chunky outflows on current accts and a shrinking no. of deposit box holders (which had hitherto covered 4/5ths of elaborate branch costs).

This coupled to the fact that even in the South East areas where Metro Branches are present, they have failed to pick up the accounts and deposits of the Lloyds/HSBC/NatWest customers that have had local their branches closed...as analysis has shown, that account holders just shrug and travel a bit further if they need to visit a branch such is the 'stickiness' to your bank/aversion to faff.

Can't help thinking he's in affect bought 53% of Blueberry, Yellow Pages or Blockbusters !