Mortgage Portfolio Acquisition

RNS Number : 9351G

Metro Bank PLC

02 June 2017

 

2 June 2017

METRO BANK PLC

MORTGAGE PORTFOLIO ACQUISITION

Metro Bank plc announces that it has completed the purchase of a portfolio of UK mortgages (the "Portfolio") from Cerberus European Residential Holdings B.V. for £ 596.7m

All lending in the Portfolio is secured on property, well diversified across the UK, and has a similar credit risk profile to Metro Bank's current mortgage book.

The Portfolio consists of approximately 92% buy to let mortgages, with the remainder being owner occupied. The Portfolio has a weighted average seasoning of c.10 years and the weighted average loan to value is c.70%, with a current expected pay rate of c.1.6% principally linked to the Bank of England base rate.

The consideration of £596.7m represents the value at which the acquired mortgages will be taken on to the Bank's balance sheet and is being financed using cash from existing resources. The Portfolio is being acquired at a discount to par.

Craig Donaldson, CEO, said: "Our lending and deposit growth has gone from strength to strength and the acquisition of this high-quality loan Portfolio supports our high-growth, organic business model as we track ever closer to our 2020 guidance. In particular the acquisition increases the Loan to Deposit ratio to c.78% (2020 guidance c.80%). The Portfolio complements our existing mortgage book and demonstrates our willingness and ability, helped by our strong deposit growth, to take advantage of opportunities as they arise."

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR") and was authorised for release by Michael Brierley, Chief Financial Officer.  

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For more information, please contact:

Metro Bank PLC Investor Relations

Jo Roberts

[phone]

[e-mail]

Tulchan Communications

Martin Pengelley/ Latika Shah

[phone]

[e-mail]

About Metro Bank

Metro Bank operates retail hours, not banking hours. It is open seven days a week (8am- 8pm Monday to Friday, 8am - 6pm Saturday, 11am - 5pm Sunday and bank holidays), every day of the year apart from Easter Sunday, Christmas Day and New Year's Day.

Metro Bank PLC. Registered in England and Wales. Company number: 6419578. Registered office: One Southampton Row, London, WC1B 5HA. 'Metrobank' is the registered trade mark of Metro Bank PLC.

We're authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Most relevant deposits are protected by the Financial Services Compensation Scheme. For further information about the Scheme refer to the FSCS website www.fscs.org.uk.

All Metro Bank products are subject to status and approval.

Metro Bank PLC is an independent UK bank - it is not affiliated with any other bank or organisation (including the METRO newspaper or its publishers) anywhere in the world. Please refer to Metro Bank using the full name.

 

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