Metro Bank Holdings PLC (LSE: MTRO
LN)
26 February 2025
Metro Bank
Holdings PLC (the "Company")
Legal Entity Identifier:
984500CDDEAD6C2EDQ64
THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF
ARTICLE 7 OF THE UK VERSION
OF REGULATION (EU) NO. 596/2014 ON MARKET ABUSE, AS IT FORMS PART
OF UK DOMESTIC
LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT
2018.
FOR
IMMEDIATE RELEASE
Metro Bank
Confirms Sale of £584
million[1] Unsecured
Personal Loan Book
Highlights
-
Sale allows
acceleration of asset rotation
-
Pro-forma[2]
CET1 ratio
improves by c81bps upon completion
-
Pro
forma[2]
MREL ratio
improves by c129bps upon completion
-
Day one gain
on sale[3]
c£11
million
-
Guidance
unaffected given very limited impact on earnings and
NIM
Summary
Metro Bank today confirms entering
into an agreement to sell a portfolio of
approximately £584 million performing unsecured personal loans (the
“Portfolio”)[4].
The transaction is expected to result in a 30 June 2024 pro-forma
improvement in Metro Bank's CET1 ratio by c81bps and total capital
plus MREL ratio of c129bps from 22.2% to 23.5%.
The sale of the Portfolio is in
line with Metro Bank’s strategy to reposition its balance sheet and
enhance risk-adjusted returns on capital. The transaction is
capital accretive and creates additional lending capacity to enable
Metro Bank to continue its asset rotation towards higher yielding
commercial, corporate, SME lending and specialist
mortgages.
The Portfolio has a gross book
value of £584 million with a weighted average rate of
c5.3%. It consists of performing unsecured personal loans with an
average remaining fixed-rate term of c2.4 years.
The transaction results in an
estimated c£11 million gain on sale[5]
upon completion.
Commenting on the transaction,
Daniel Frumkin, Metro Bank’s Chief Executive Officer,
said:
“The sale of our unsecured
personal loan book is in line with our strategy and positions Metro
Bank strongly for future growth. Upon completion, the transaction
is capital accretive and will allow us to further optimise our
balance sheet as we strengthen our position as a specialist lender
of choice.”
The person responsible for
arranging release of this announcement on behalf of Metro Bank is
Clare Gilligan, Company Secretary.
-
Cut-off as at 31-December-24
-
Pro-forma estimated as at 30-June-24
-
The final purchase price will include adjustments and
reconciliations to reflect certain costs and collections in the run
up to completion of the transaction. Sale is expected to complete
by late Q1 2025
-
Metro Bank will retain the legal title to these loans, as
well as responsibility for servicing
them and liability for historic and
ongoing conduct issues unless caused by any servicer which replaces
Metro Bank
-
Gain on sale upon completion includes release of expected
credit loss provision and other associated fees
Enquiries:
Metro Bank
PLC Investor Relations
Stella Gavaletakis
+44 (0) 7464 224720
IR@metrobank.plc.uk
Metro Bank
Media Relations
Victoria Gregory
+44 (0) 7773 244608
pressoffice@metrobank.plc.uk
FGS
Global
Chris Sibbald
+44 (0) 7855 955531
metrobank-lon@fgsglobal.com
ENDS
About Metro
Bank
Metro Bank is celebrated for its
exceptional customer experience. It holds the number two spot for
personal and business service instore in the Competition and
Markets Authority’s Service Quality Survey in February
2025.
Since 2012, Metro Bank has
originated and approved just over £10bn in commercial
lending.
The community bank offers retail,
business, commercial and private banking services, and prides
itself on giving customers the choice to bank however, whenever and
wherever they choose, and supporting the customers and communities
it serves. Whether that’s through its network of 76 stores; on the
phone through its UK-based contact centres; or online through its
internet banking or award-winning mobile app, the bank offers
customers real choice.
Metro Bank is a multi-award-winning
organisation.
The Bank has also been awarded
“Large Loans Mortgage Lender of the Year”, 2024 and 2023
Mortgage
Awards, accredited as a top
ten Most Loved Workplace 2023, “2023 Best Lender of the Year – UK”
in the M&A Today, Global Awards, the “Inclusive Culture Initiative
Award” in the 2023 Inclusive Awards, “Diversity, Equity &
Inclusion Award” and “Leader of the Year Award 2023” at the Top 1%
Workplace Awards, “Best Women Mortgage Leaders in the UK” from
Elite Women 2023, “Diversity Lead of the Year”, 2023 Women in
Finance, Best Large Loan Lender, 2023 Mortgage Strategy Awards,,
“Best Business Credit Card”,
Forbes Advisor Best of 2023 Awards, “Best Business Credit Card”, 2023 Moneynet
Personal Finance Awards.
Metro Bank Holdings PLC (registered
in England and Wales with company number 14387040, registered
office: One Southampton Row, London, WC1B 5HA) is the listed entity
and holding company of Metro Bank PLC.
Metro Bank PLC (registered in
England and Wales with company number 6419578, registered office:
One Southampton Row, London, WC1B 5HA) is authorised by the
Prudential Regulation Authority and regulated by the Financial
Conduct Authority and Prudential Regulation Authority. ‘Metrobank’
is a registered trademark of Metro Bank PLC. Eligible 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 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.
