REG - NatWest Group plc Nat.Westminster Bk - NatWest acquires Metro Bank mortgage portfolio

NatwestAnnouncement

26/07/2024 07:15

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RNS Number : 9246X  NatWest Group plc  26 July 2024

26 July 2024

 

NatWest Group plc

 

NatWest acquires Metro Bank mortgage portfolio

 

NatWest Group plc ("NatWest Group") today announces that it(1) has entered
into an agreement with Metro Bank plc ("Metro Bank") to acquire a £2.5
billion portfolio of prime UK residential mortgages, with a weighted average
current loan to value of c.62%.

 

On completion of the transaction(2) NatWest Group expects to welcome around
10,000 customer accounts which will continue to be serviced by Metro Bank, in
accordance with current arrangements, following the transfer to NatWest Group.

 

Commenting on the transaction, Paul Thwaite, CEO of NatWest Group said,

 

"Following today's announcement, we are acquiring £2.5 billion of prime
residential mortgages from Metro Bank and, as a result, look forward to
welcoming around 10,000 customers to NatWest Group.

 

"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.

 

"We are focussed on a smooth transition and have a strong track record of
successful integration with Metro Bank, following our previous acquisition of
mortgages in 2020."

 

The impact of the transaction, based on NatWest Group's CET1 ratio at 30 June
2024, equates to a reduction of less than 10 basis points.(3)

 

Additional information

 

1.    NatWest Group is entering into this transaction through its
subsidiary, National Westminster Bank plc.

2.    Completion of the transaction is conditional on a satisfactory
response from the Competition & Markets Authority. Subject to this,
completion is expected to occur during H2 2024.

3.    NatWest Group reported a Common Equity Tier 1 (CET1) ratio of 13.6%
at 30 June 2024.

Further Information

Investor Relations

Claire Kane

Director  of Investor Relations

+44 (0) 20 7672 1758

 

NatWest Media Relations

+44 (0) 131 523 4205

 

Legal Entity Identifiers

 

NatWest Group plc: 2138005O9XJIJN4JPN90

National Westminster Bank plc: 213800IBT39XQ9C4CP71

 

This document contains forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995, such as
statements that include, without limitation, the words 'expect', 'estimate',
'project', 'anticipate', 'commit', 'believe', 'should', 'intend', 'will',
'plan', 'could', 'probability', 'risk', 'Value-at-Risk (VaR)', 'target',
'goal', 'objective', 'may', 'endeavour', 'outlook', 'optimistic', 'prospects'
and similar expressions or variations on these expressions. These statements
concern or may affect future matters, such as NatWest Group's future economic
results, business plans and strategies. In particular, this document includes
forward-looking statements relating to NatWest Group plc in respect of, but
not limited to: its economic and political risks, its financial position,
profitability and financial performance (including financial, capital, cost
savings and operational targets), the implementation of its strategy, its
climate and sustainability-related targets, increasing competition from
incumbents, challengers and new entrants and disruptive technologies, its
access to adequate sources of liquidity and funding, its regulatory capital
position and related requirements, its exposure to third party risks, its
ongoing compliance with the UK ring-fencing regime and ensuring operational
continuity in resolution, its impairment losses and credit exposures under
certain specified scenarios, substantial regulation and oversight, ongoing
legal, regulatory and governmental actions and investigations, and NatWest
Group's exposure to operational risk, conduct risk, cyber, data and IT risk,
financial crime risk, key person risk and credit rating risk. Forward-looking
statements are subject to a number of risks and uncertainties that might cause
actual results and performance to differ materially from any expected future
results or performance expressed or implied by the forward-looking statements.
Factors that could cause or contribute to differences in current expectations
include, but are not limited to, future growth initiatives (including
acquisitions, joint ventures and strategic partnerships), the outcome of
legal, regulatory and governmental actions and investigations, the level and
extent of future impairments and write-downs, legislative, political, fiscal
and regulatory developments, accounting standards, competitive conditions,
technological developments, interest and exchange rate fluctuations, general
economic and political conditions and the impact of climate-related risks and
the transitioning to a net zero economy. These and other factors, risks and
uncertainties that may impact any forward-looking statement or NatWest Group
plc's actual results are discussed in NatWest Group plc's 2023 Annual Report
on Form 20-F, NatWest Group plc's Interim Management Statement for Q1 and H1
2024 on Form 6-K, and its other public filings. The forward-looking statements
contained in this document speak only as of the date of this document and
NatWest Group plc does not assume or undertake any obligation or
responsibility to update any of the forward-looking statements contained in
this document, whether as a result of new information, future events or
otherwise, except to the extent legally required.

 

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