26 July 2024
NatWest Group plc
NatWest acquires Metro Bank mortgage
portfolio
NatWest Group plc ("NatWest Group")
today announces that it1 has entered into an agreement
with Metro Bank plc ("Metro Bank") 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.
"We are focussed 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.3
Additional information
1. NatWest Group
is entering into this transaction through its subsidiary, National
Westminster Bank plc.
2. 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.
3. NatWest Group
reported a Common Equity Tier 1 (CET1) ratio of 13.6% at 30 June
2024.
Further Information
Investor Relations
Claire Kane
Director of Investor
Relations
+44 (0) 20 7672 1758
NatWest Media Relations
+44 (0) 131 523 4205
Legal Entity Identifiers
NatWest Group plc:
2138005O9XJIJN4JPN90
National Westminster Bank plc:
213800IBT39XQ9C4CP71
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