ROYAL Bank of Scotland owner NatWest Group has snapped up a £3 billion mortgage book from Metro Bank.
The deal, announced this evening after the stock market closed, brings to NatWest more than 13,000 customers, who will continue to be serviced by Metro Bank in accordance with current arrangements.
NatWest said the portfolio consists of owner occupied residential mortgages with a weighted average current loan to value of around 60 per cent.
The purchase price of around £3.1bn represents a 2.7 per cent premium on gross book value, with the impact on the NatWest capital position, based on its common equity tier 1 (CET1) ratio of 18.2 per cent at September 30, equating to a reduction of around 15 basis points.
NatWest chief executive Alison Rose said: “Growing our mortgage book is an important strategic priority as we build a bank that delivers sustainable returns for shareholders. The addition of this loan book will supplement the strong organic growth that we continue to achieve.
“Our strong capital position, well above the target range, continues to provide the flexibility to navigate the uncertain environment and support our customers during the challenging times ahead.”
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