Metro Bank Sells £584 Million Unsecured Personal Loan Book

Metro Bank Holdings PLC has announced the sale of a £584 million portfolio of unsecured personal loans, a move aligned with its strategy to enhance the company's financial structure. This transaction, set to conclude by late Q1 2025, aims to accelerate asset rotation and improve the bank's capital ratios. The pro-forma Common Equity Tier 1 (CET1) ratio is expected to increase by 81 basis points, while the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) ratio will improve by 129 basis points, resulting in a total capital rise from 22.2% to 23.5%.

The sale is expected to generate a one-time gain of approximately £11 million, and it will have a minimal impact on Metro Bank's ongoing earnings and net interest margin. The transaction is part of Metro Bank’s larger plan to shift focus towards higher-yielding commercial, corporate, and specialist mortgage lending. CEO Daniel Frumkin stated that the sale strengthens Metro Bank's position as a specialist lender, allowing better balance sheet optimization.