Barclays has entered into exclusive negotiations to acquire a significant residential mortgage portfolio from Metro Bank, valued at £3bn, according to reports.
This development is a strategic component of Metro Bank’s extensive financial restructuring, aimed at averting a potential collapse of the smaller high street lender, reports Sky News.
Metro Bank’s move to sell off its residential mortgage book to Barclays is seen as a critical step to strengthen its capital position. Yesterday shareholders voted overwhelmingly to support a £925m refinancing plan.
The bank offers a range of services including current and business accounts, personal loans, and insurance products. It employs about 4,000 staff and operates from roughly 75 branches nationwide.
Last month, Metro Bank reported that deposit outflows had stabilised following the agreement on a recapitalisation deal.
Dan Frumkin, Metro Bank’s chief executive, hinted at Barclays being a probable buyer for the mortgage book. In a conference call, he mentioned to an analyst from the FTSE 100 bank, “We have genuine interest … across a range of names – [one not too] dissimilar to what’s on your pay cheque.”
A final deal between Barclays and Metro Bank is expected to be concluded by the end of the year, according to Sky News
