View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
  2. Company news
June 5, 2017

Metro Bank acquires mortgage portfolio from Cerberus Capital Management

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.

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.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Retail Banker International