Metro Bank has sold a £584m portfolio of personal loans, in a bid to sharpen its focus on specialist lending.
The high street bank said the sale of the unsecured loan book, which has an average remaining term of around two and a half years, will lead to a gain of about £11m.
The move will free up lending capacity for key areas like commercial, corporate, small business lending, and specialist mortgages.
The transaction is expected to improve the Bank’s balance sheet, with a pro-forma CET1 ratio increase of approximately 0.81% and a total capital plus MREL ratio increase of around 1.29%.
The loans, with a weighted average rate of 5.3%, are part of Metro Bank’s strategy to optimise its balance sheet.
Daniel Frumkin, CEO of Metro Bank, 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.”
