Metro Bank completes sale of £2.5 billion residential mortgage portfolio to NatWest Group PLC | 30.09.24

Metro Bank Holdings PLC (LSE: MTRO LN)

September 30, 2024

Metro Bank Holdings PLC

Legal entity identifier: 984500CDDEAD6C2EDQ64

Metro Bank completes £2.5 billion sale(1) Residential mortgage portfolio to NatWest Group PLC

Following Metro Bank’s announcement on 26 July 2024 regarding the sale of a portfolio of approximately £2.5(1) billion in prime residential mortgages (the “Portfolio”) to NatWest Group PLC (“NatWest”), Metro Bank confirms that the sale closed on September 30, 2024.

Upon completion the Portfolio had a book value of c£2.4 billion, resulting in a total cash amount of c£2.3 billion(2)with TFSME(3) to be repaid from the proceeds.

The sale of the portfolio is in line with Metro Bank’s strategy to reposition its balance sheet and improve risk-adjusted returns on capital. The transaction is accretive to earnings, NIM and capital ratios, and the sale creates additional lending capacity to enable Metro Bank to continue its asset rotation into higher yielding commercial, corporate, SME loans and specialist mortgages. The improved guidance for the first half of 2024 results assumed a successful completion of the portfolio sale and therefore remains unchanged.

(1) Cut-off on March 31, 24

(2) The final purchase price includes adjustments and reconciliations to reflect certain limited exclusions, fees and collections leading up to the completion of the transaction

(3) Bank of England Term Funding Scheme with extra incentives for SMEs

To ask:

Metro Bank PLC Investor Relations

[email protected]

Media Relations with Metro Bank

Mona Patel

+44 (0) 7815 506845

[email protected]

Teneo

Haya Herbert-Burns/Anthony DiNatale

+44 (0)7342 031051/ +44 (0)7880 715975

[email protected]

About Metrobank

Metro Bank is celebrated for its exceptional customer experience. In August 2024, it was named the best bank for in-store service for business customers in the Competition and Markets Authority’s Service Quality Survey.

Since 2012, Metro Bank has originated and approved just over £10 billion of commercial lending.

Offering retail, business, commercial and private banking services, the community bank prides itself on offering customers the choice to bank whenever and wherever they want and supporting the customers and communities it serves. Whether through the network of 75 stores; on the phone through UK-based contact centres; Whether online through internet banking or the award-winning mobile app, the bank offers customers real choice.

Metro Bank is a multi-award winning organisation. The Bank has also been rewarded “Large Loan Mortgage Lender of the Year”, Mortgage Awards 2024 and 2023accredited as a top ten Most Loved Workplace 2023,”2023 Best Lender of the Year – UK” at the M&A Today, Global Awardsthe “Inclusive Culture Initiative Award” during the Inclusive Awards 2023, “Diversity, Equity & Inclusion Award” and “Leader of the Year Award 2023” at the Top 1% Workplace Awards“Best Female Mortgage Leaders in the UK” from Elite Women 2023“Diversity Leader of the Year”, 2023 Women in FinanceDear Major Lender, Mortgage Strategy Awards 2023, “Best Business Credit Card,” Forbes Advisor Best of 2023 Awards, “Best Business Credit Card”, Moneynet Personal Finance Awards 2023.

Metro Bank Holdings PLC (registered in England and Wales with company number 14387040, registered office: One Southampton Row, London, WC1B 5HA) is the listed entity and holding company of Metro Bank PLC.

Metro Bank PLC (registered in England and Wales with company number 6419578, registered office: One Southampton Row, London, WC1B 5HA) is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. ‘Metrobank’ is a registered trademark of Metro Bank PLC. Eligible deposits are protected by the Financial Services Compensation Scheme. For more information about the scheme, please refer to the FSCS website www.fscs.org.uk. All Metro Bank products are subject to status and approval.

Metro Bank is an independent UK bank and is not affiliated with any other bank or organization (including METRO Newspaper or its publishers) anywhere in the world. Refer to Metro Bank by full name.

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