NatWest has announced its acquisition of Metro Bank’s £2.4bn mortgage portfolio, adding approximately 10,000 customer accounts to its books.
Metro Bank will continue to manage these accounts post-acquisition. The deal comes as NatWest reports a robust Q2 performance, with shares climbing 8% in response, according to Finextra.
The move represents a strategic expansion for NatWest, complementing its recent purchase of Sainsbury’s Bank’s mortgage portfolio.
Paul Thwaite, CEO of NatWest Group, highlighted that this acquisition aligns with the bank’s growth objectives and risk management strategy.
He said, “”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.”
For Metro Bank, the sale provides a financial boost, following a £600m refinancing deal last year, which included talks of offloading its mortgage portfolio.
In addition to the acquisition news, NatWest disclosed a £24m expense related to the scrapped “Tell Sid” advertising campaign, which was part of the 2008 bailout agreement.
Despite the campaign featuring Sir Trevor McDonald already being produced, it was cancelled due to the announcement of a general election.
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