British lender Metro Bank has purchased a mortgage portfolio from a company owned by American private equity firm Cerberus Capital Management in a £596.7m deal.
The portfolio, acquired from Cerberus European Residential Holdings, includes 92% buy-to-let mortgages while the remaining is owner-occupied. The deal was funded in cash from existing resources.
Go deeper with GlobalData
Metro said that the acquired portfolio is secured on property and has a credit risk profile similar to its existing mortgage book.
Metro Bank CEO Craig Donaldson said: “Our lending and deposit growth has gone from strength to strength and the acquisition of this high-quality loan Portfolio supports our high-growth, organic business model as we track ever closer to our 2020 guidance.”
The deal will boost the bank’s loan to deposit ratio to 78%, as against the 2020 guidance of 80%, Donaldson said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
