REG-Metro Bank Holdings PLC Metro Bank Confirms Sale of £584 million Unsecured Personal Loan Book

Metro Bank HoldingsAnnouncement

26/02/2025 07:15

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   Metro Bank Holdings PLC (MTRO)
   Metro Bank Confirms Sale of £584 million Unsecured Personal Loan Book

   26-Feb-2025 / 07:00 GMT/BST

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                                                                   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.

    1. Cut-off as at 31-December-24
    2. Pro-forma estimated as at 30-June-24
    3. 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
    4. 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
    5. 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

    1 pressoffice@metrobank.plc.uk

   FGS Global

   Chris Sibbald

   +44 (0) 7855 955531

    2 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
    3 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.

    

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   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GB00BMX3W479
   Category Code:  MSCH
   TIDM:           MTRO
   LEI Code:       984500CDDEAD6C2EDQ64
   OAM Categories: 2.2. Inside information
   Sequence No.:   377211
   EQS News ID:    2091527


    
   End of Announcement EQS News Service

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References

   Visible links
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