Metro Bank Confirms Sale of GBP584 million Unsecured Personal Loan Book

DJ Metro Bank Confirms Sale of GBP584 million Unsecured Personal Loan Book

Metro Bank Holdings PLC (MTRO) 
Metro Bank Confirms Sale of GBP584 million Unsecured Personal Loan Book 
26-Feb-2025 / 07:00 GMT/BST 
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                               Metro Bank Holdings PLC (LSE: MTRO LN) 
26 February 2025 
 
 
Metro Bank Holdings PLC (the "Company") 
 
Legal Entity Identifier: 984500CDDEAD6C2EDQ64 
 
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK VERSION OF REGULATION (EU) NO. 
596/2014 ON MARKET ABUSE, AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. 
 
FOR IMMEDIATE RELEASE 
 
 
Metro Bank Confirms Sale of GBP584 million[1] Unsecured Personal Loan Book 
Highlights 
   -- Sale allows acceleration of asset rotation 
   -- Pro-forma[2] CET1 ratio improves by c81bps upon completion 
   -- Pro forma[2] MREL ratio improves by c129bps upon completion 
   -- Day one gain on sale[3] cGBP11 million 
   -- Guidance unaffected given very limited impact on earnings and NIM 
Summary 
Metro Bank today confirms entering into an agreement to sell a portfolio of approximately GBP584 million performing 
unsecured personal loans (the "Portfolio")[4]. The transaction is expected to result in a 30 June 2024 pro-forma 
improvement in Metro Bank's CET1 ratio by c81bps and total capital plus MREL ratio of c129bps from 22.2% to 23.5%. 
The sale of the Portfolio is in line with Metro Bank's strategy to reposition its balance sheet and enhance 
risk-adjusted returns on capital. The transaction is capital accretive and creates additional lending capacity to 
enable Metro Bank to continue its asset rotation towards higher yielding commercial, corporate, SME lending and 
specialist mortgages. 
The Portfolio has a gross book value of GBP584 million with a weighted average rate of c5.3%. It consists of performing 
unsecured personal loans with an average remaining fixed-rate term of c2.4 years. 
The transaction results in an estimated cGBP11 million gain on sale[5] upon completion. 
Commenting on the transaction, Daniel Frumkin, Metro Bank's Chief Executive Officer, 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." 
 
The person responsible for arranging release of this announcement on behalf of Metro Bank is Clare Gilligan, Company 
Secretary. 
 1. Cut-off as at 31-December-24 
 2. Pro-forma estimated as at 30-June-24 
 3. The final purchase price will include adjustments and reconciliations to reflect certain costs and 
  collections in the run up to completion of the transaction. Sale is expected to complete by late Q1 2025 
 4. Metro Bank will retain the legal title to these loans, as well as responsibility for servicing them and 
  liability for historic and ongoing conduct issues unless caused by any servicer which replaces Metro Bank 
 5. Gain on sale upon completion includes release of expected credit loss provision and other associated fees 
 
Enquiries: 
Metro Bank PLC Investor Relations 
Stella Gavaletakis 
[phone] 
[e-mail] 
Metro Bank Media Relations 
Victoria Gregory 
[phone] 
[e-mail] 
FGS Global 
Chris Sibbald 
[phone] 
[e-mail] 
 
ENDS 
About Metro Bank 
Metro Bank is celebrated for its exceptional customer experience. It holds the number two spot for personal and 
business service instore in the Competition and Markets Authority's Service Quality Survey in February 2025. 
Since 2012, Metro Bank has originated and approved just over GBP10bn in commercial lending. 
The community bank offers retail, business, commercial and private banking services, and prides itself on giving 
customers the choice to bank however, whenever and wherever they choose, and supporting the customers and communities 
it serves. Whether that's through its network of 76 stores; on the phone through its UK-based contact centres; or 
online through its internet banking or award-winning mobile app, the bank offers customers real choice. 
Metro Bank is a multi-award-winning organisation. The Bank has also been awarded "Large Loans Mortgage Lender of the 
Year", 2024 and 2023 Mortgage Awards, accredited as a top ten Most Loved Workplace 2023, "2023 Best Lender of the Year 
- UK" in the M&A Today, Global Awards, the "Inclusive Culture Initiative Award" in the 2023 Inclusive Awards, 
"Diversity, Equity & Inclusion Award" and "Leader of the Year Award 2023" at the Top 1% Workplace Awards, "Best Women 
Mortgage Leaders in the UK" from Elite Women 2023, "Diversity Lead of the Year", 2023 Women in Finance, Best Large Loan 
Lender, 2023 Mortgage Strategy Awards" "Best Business Credit Card", Forbes Advisor Best of 2023 Awards, "Best Business 
Credit Card", 2023 Moneynet Personal Finance Awards. 
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 authorised 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 further information about the Scheme 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 - it is not affiliated with any other bank or organisation (including the METRO 
newspaper or its publishers) anywhere in the world. Please refer to Metro Bank using the full name. 
 
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Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse 
Regulation (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
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ISIN:      GB00BMX3W479 
Category Code: MSCH 
TIDM:      MTRO 
LEI Code:    984500CDDEAD6C2EDQ64 
OAM Categories: 2.2. Inside information 
Sequence No.:  377211 
EQS News ID:  2091527 
 
End of Announcement EQS News Service 
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February 26, 2025 02:00 ET (07:00 GMT)