Challenger bank Metro Bank has started looking for buyers for its £3bn mortgage book in an effort to shore up its balance sheet, media reports have suggested
Initially reported in Sky News, Metro Bank has allegedly contacted Lloyds Banking Group and Natwest as potential buyers.
Sky News said that it was unclear at this moment in time whether either high street lender was interested in acquiring the mortgage book.
The report added that the sale process of the mortgage book would be part of a bigger capital-raising exercise.
Earlier this week, reports suggested that the bank was seeking £600m capital raise after the regulator delayed approval to allow it to use its internal risk model for residential mortgages.
Metro Bank share price plummets
Metro Bank’s share price fell to a low of 34.97p at one point yesterday, a decrease from 51.36p at the end of the previous day. The bank’s share price has since rebounded slightly and stands at 40.39p as of 9:15am.
Analyst firm DBRS Morningstar said that it expected Metro Bank’s access to external financing will be “highly constrained” due to its low market cap.
It also noted that whilst its loan book was performing in line with peers it was facing a “number of structural issues” including an elevated cost base.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
