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NatWest Acquires Metro Bank Mortgage Portfolio – FF News
NatWest Group plc (“NatWest Group”) announces that it has entered into an agreement with Metro Bank plc (“Metro Bank”) will acquire a £2.5 billion portfolio of prime residential mortgages in the UK, with a weighted average loan-to-value ratio of approximately 62%.
Once the transaction is completed, NatWest Group expects to welcome approximately 10,000 customer accounts, which will continue to be managed by Metro Bank, in accordance with current arrangements, following the transfer to NatWest Group.
Commenting on the transaction, Paul Thwaite, CEO of NatWest Group, said: “Following today’s announcement, we are acquiring £2.5 billion of premium residential mortgages from Metro Bank and, as a result, we look forward to welcoming around 10,000 customers into the NatWest Group.
“This transaction is a further opportunity to accelerate the growth of our retail mortgage portfolio within our current risk appetite, with attractive yields. It is aligned with our strategic priorities and builds on our recent acquisition by Sainsbury’s Bank.
“We are focused on a smooth transition and have a strong track record of successfully integrating with Metro Bank, following our previous mortgage acquisition in 2020.”
The impact of the transaction, based on NatWest Group’s CET1 ratio as at 30 June 2024, equates to a reduction of less than 10 basis points.