Prices delayed by at least 15 minutes | Print
Metro Bank Holdings PLC (MTRO)
ORD 0.0001PThis share can be held in a Dealing accountStocks and shares ISALifetime ISAJISASIPPand can be used with Regular investment and Dividend reinvestment
Metro Bank sells personal loan book to focus on specialist lending
(Alliance News) - Metro Bank Holdings PLC on Wednesday confirmed the sale of its GBP584 million portfolio of unsecured personal loans, aligning with its strategy to refocus on higher-yielding specialist lending.
The London-based high street lender said the transaction is expected to generate an estimated GBP11 million gain upon completion. It also anticipates an improvement in its common equity tier 1 ratio by approximately 81 basis points and a boost to its total capital plus minimum requirement for own funds and eligible liabilities ratio by around 129 basis points.
Chief Executive Officer Daniel Frumkin 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."
Metro Bank said the deal would create additional lending capacity, enabling it to prioritise commercial, corporate, and small business lending, as well as specialist mortgages. The portfolio, which consists of performing loans with an average remaining term of 2.4 years and a weighted average rate of 5.3%, will be transferred to an undisclosed buyer.
The bank added that the transaction would have a "very limited impact" on its earnings, with its financial guidance remaining unchanged.
The move comes as Metro Bank continues efforts to reshape its operations. In late 2023, it secured a GBP925 million capital raise, which saw Colombian billionaire Jaime Gilinski Bacal become its majority shareholder. The bank has since taken steps to cut costs, including reducing its workforce by 1,000 jobs and scaling back its seven-day-a-week branch openings.
Metro Bank is set to report 2024 results on Thursday.
Metro Bank shares were up 0.1% at 93.89 pence in London on Wednesday morning.
By Eva Castanedo, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2025 Alliance News Ltd. All Rights reserved.
AJ Bell Management Limited (company number 03948391), AJ Bell Securities Limited (company number 02723420) and AJ Bell Asset Management Limited (company number 09742568) are authorised and regulated by the Financial Conduct Authority. All companies are registered in England and Wales at 4 Exchange Quay, Salford Quays, Manchester M5 3EE. See website for full details. AJ Bell procures the provision of the Morningstar Licensed Tools on an “as is” basis and does not guarantee the performance of or accept liability for the Licensed Tools. To the maximum extent permitted by law, AJ Bell excludes liability for the Licensed Tools, including liability for any failure, interruption, delay or defect in the performance of any Licensed Tool, unless it arises as a direct result of the negligence of AJ Bell.
© Copyright 2025 AJ Bell. All rights reserved.