NatWest Group plc announces that it1 has entered into an agreement with Metro Bank plc to acquire a £2.5 billion portfolio of prime UK residential mortgages, with a weighted average current loan to value of c.62%.
On completion of the transaction2 NatWest Group “expects to welcome around 10,000 customer accounts which will continue to be serviced by Metro Bank, in accordance with current arrangements, following the transfer to NatWest Group.”
Commenting on the transaction, Paul Thwaite, CEO of NatWest Group said:
“Following today’s announcement, we are acquiring £2.5 billion of prime residential mortgages from Metro Bank and, as a result, look forward to welcoming around 10,000 customers to NatWest Group. This transaction is a further opportunity to accelerate the growth of our Retail mortgage book within our existing risk appetite, with attractive returns. It is in line with our strategic priorities and builds on our recent acquisition from Sainsbury’s Bank.”
As noted in the update:
“We are focused on a smooth transition and have a strong track record of successful integration with Metro Bank, following our previous acquisition of mortgages in 2020.”
The impact of the transaction, based on NatWest Group’s CET1 ratio “at 30 June 2024, equates to a reduction of less than 10 basis points.”
NatWest Group is entering into this transaction “through its subsidiary, National Westminster Bank plc.”
Completion of the transaction is conditional “on a satisfactory response from the Competition & Markets Authority.”
Subject to this, completion is expected to occur during H2 2024.
NatWest Group reported “a Common Equity Tier 1 (CET1) ratio of 13.6% at 30 June 2024.”
As explained by its management, NatWest Group is a business that “understands when their customers and people succeed, our communities succeed, and our economy thrives.”
As part of their purpose, they’re looking at how they “can drive change for their communities in enterprise, learning and climate.”
As one of the supporters of UK business, they’re “prioritizing enterprise as a force of change.”