NatWest has acquired Metro Bank’s £2.4 billion mortgage portfolio, which is expected to add approximately 10,000 customer accounts that will continue to be serviced by Metro Bank. Following this news, NatWest’s shares experienced an 8% increase, coinciding with their Q2 results announcement.
This acquisition represents a significant boost for Metro Bank, coming after a £600 million refinancing agreement last year that included discussions about selling its mortgage book. Paul Thwaite, CEO of NatWest Group, noted, “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.”
Additionally, the results announcement highlighted that NatWest had to spend £24 million on the cancelled “Tell Sid” advertising campaign featuring Sir Trevor McDonald. This expenditure stems from obligations related to the 2008 bailout. Although the commercials had already been filmed, the campaign was scrapped after the announcement of a general election.