(Alliance News) - NatWest Group PLC on Monday said it has agreed to buy a GBP3.0 billion portfolio of prime UK mortgages from challenger bank Metro Bank PLC
The FTSE 100-listed lender said the portfolio consists of owner-occupied residential mortgages with a weighted average current loan to value of 60%. The purchase price of GBP3.1 billion represents a 2.7% premium on gross book value.
"Growing our mortgage book is an important strategic priority as we build a bank that delivers sustainable returns for shareholders. The addition of this loan book will supplement the strong organic growth that we continue to achieve," said NatWest Chief Executive Alison Rose.
Shares in NatWest were trading 3.7% lower at 151.60 pence each on Monday morning in London. Metro Bank shares were 15% higher at 132.10p each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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