Nice pop for Metro Bank after reporting
There is a clause that lets Natwest exclude up to 10% of the loans from the purchase but even given that this is great for Metro. As it’s a “2.7% premium on gross book value results in an estimated £83 million gain on sale” and on completion it is expected to improve their total capital plus MREL to 24.2%.
This additionally gives Metro more capital for their unsecured lending portfolio through their RateSetter acquisition which will provide better margins.
In other news Metro’s new Chairman purchased 30,000 shares and the CEO of Metro purchased an additional 1,500,000 more shares in November. Also the disclosed shorts are slowly closing.