Metro Bank (GB:MTRO) has released an update.
Metro Bank PLC has announced the sale of its £2.5 billion residential mortgage portfolio to NatWest Group PLC, a move expected to improve the bank’s risk-adjusted returns on capital. This strategic sale is set to boost earnings, net interest margin (NIM), and capital ratios for Metro Bank, while also allowing the bank to pivot towards more profitable commercial and specialist lending markets. Despite a £105 million estimated loss due to the original lower rate environment of the mortgages, the transaction is seen as a positive step towards Metro Bank’s goal of becoming a specialist lender.
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