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Metro Bank PLC (MTRO)

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Friday 23 February, 2018

Metro Bank PLC

Mortgage Book Acquisition

RNS Number : 8353F
Metro Bank PLC
23 February 2018
 

23 February 2018

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014.

 

METRO BANK PLC

 

Legal Entity Identifier: 213800X5WU57YL9GPK89

 

 

METRO BANK TO ACQUIRE MORTGAGE BOOK

 

Metro Bank PLC today announces it has agreed to acquire a portfolio of UK mortgages (the "Portfolio") from CERH RSMC Sub B.V. and Capital Home Loans Limited for £523m. The deal is expected to complete on 1 March 2018.

 

All lending in the Portfolio is secured on property, predominately in London and the South East (49%) with the remainder spread across the UK, and has a similar credit risk profile to Metro Bank's current mortgage book.

 

The Portfolio primarily consists of variable rate Buy-to-Let mortgages, 98% linked to Bank of England base rate.  The Portfolio has a weighted average seasoning of c.13 years and the weighted average loan to value is less than 50%.

 

The consideration of £523m 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. The current expected pay rate on the portfolio is c.1.9%, but the expected yield will be greater than 1.9% when the discount to par is applied.

 

Craig Donaldson, CEO, said: "As our results this week demonstrated, our lending and deposit growth continues to be exceptionally strong.  However, the acquisition of the portfolio announced today, evidences our ability to take advantage of opportunities when they meet our risk return profile.  This high-quality loan portfolio further strengthens our high growth, organic business model, and complements our conservative risk appetite."

 

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.

 

ENDS

 

Metro Bank PLC Investor Relations

Jo Roberts

+44 (0) 20 3402 8900

[email protected]

Metro Bank PLC Media Relations
Tina Coates
+ 44 (0) 20 3870 6109
[email protected] 

Tulchan Communications
Martin Pengelley/ Latika Shah
+44(0)20 7353 4200
[email protected]

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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