- £384m acquisition of loan portfolio from RateSetter
- Made up of mostly unsecured consumer loans
Shares in Metro Bank (MTRO) crept up 5 per cent this morning after the lender announced the acquisition of a loan portfolio from its peer-to-peer investment platform subsidiary, RateSetter. The £384m transaction, which shifts the assets from RateSetter’s retail investor customers to the bank, will reduce Metro’s common equity tier one capital ratio by around 60 basis points.
With an average gross yield of 8 per cent, the portfolio primarily comprises rapidly-amortising unsecured consumer loans that have shown a “consistent credit performance”. The deal marks another departure from a staid and low-margin loan book, and follows the recent sale of around a third of the mortgage book to NatWest.
