TIDMNWG
RNS Number : 2420J
NatWest Group plc
21 December 2020
18 December 2020
NatWest Group plc
NatWest announces acquisition of mortgage portfolio from Metro
Bank
NatWest Group plc ("NatWest") today announces that it has
entered into an agreement with Metro Bank plc ("Metro Bank") to
acquire a GBP3.0 billion portfolio of prime UK mortgages. The
portfolio consists of owner occupied residential mortgages with a
weighted average current loan to value of c.60%.
As part of the transaction, NatWest will welcome over 13,000
customers who will continue to be serviced by Metro Bank, in
accordance with current arrangements, following the transfer to
NatWest.
The purchase price of c.GBP3.1 billion represents a 2.7 per cent
premium on gross book value(1) . The impact of the transaction,
based on NatWest's CET1 ratio at 30 September 2020, equates to a
reduction of around 15 basis points(2) .
Commenting on the transaction, Alison Rose, CEO of NatWest
said,
"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.
"Our strong capital position, well above the target range,
continues to provide the flexibility to navigate the uncertain
environment and support our customers during the challenging times
ahead."
1. There may be an adjustment to the financial impact and
consideration paid at completion under which loans representing up
to 10% by value of the portfolio may be excluded from the sale,
equal to a potential reduction in price of c.GBP0.3 billion.
NatWest has full economic benefit of the portfolio and the
transaction will be reflected in Q4 2020 results. The transaction
is expected to close during the first quarter of 2021.
2. NatWest reported a Common Equity Tier 1 (CET1) ratio of 18.2%
at 30 September 2020.
For further information, please contact:
Investor Relations
Alexander Holcroft
Head of Investor Relations
+44 (0) 20 7672 1758
RBS Media Relations
+44 (0) 131 523 4205
Forward-looking statements
This document contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, such as statements that include, without limitation,
the words 'expect', 'estimate', 'project', 'anticipate', 'commit',
'believe', 'should', 'intend', 'plan', 'could', 'probability',
'risk', 'Value-at-Risk (VaR)', 'target', 'goal', 'objective',
'may', 'endeavour', 'outlook', 'optimistic', 'prospects' and
similar expressions or variations on these expressions. These
statements concern or may affect future matters, such as NatWest
Group's future economic results, business plans and strategies. In
particular, this document may include forward-looking statements
relating to NatWest Group plc in respect of, but not limited to:
its regulatory capital position and related requirements, its
financial position, profitability and financial performance
(including financial, capital and operational targets), its access
to adequate sources of liquidity and funding, increasing
competition from new incumbents and disruptive technologies, its
exposure to third party risks, its ongoing compliance with the UK
ring-fencing regime and ensuring operational continuity in
resolution, its impairment losses and credit exposures under
certain specified scenarios, substantial regulation and oversight,
ongoing legal, regulatory and governmental actions and
investigations, the transition of LIBOR and IBOR rates to
alternative risk free rates and NatWest Group's exposure to
economic and political risks (including with respect to terms
surrounding Brexit and climate change), operational risk, conduct
risk, cyber and IT risk, key person risk and credit rating risk.
Forward-looking statements are subject to a number of risks and
uncertainties that might cause actual results and performance to
differ materially from any expected future results or performance
expressed or implied by the forward-looking statements. Factors
that could cause or contribute to differences in current
expectations include, but are not limited to, future acquisitions,
the final number of PPI claims and their amounts, the level and
extent of future impairments and write-downs (including with
respect to goodwill), legislative, political, fiscal and regulatory
developments, accounting standards, competitive conditions,
technological developments, interest and exchange rate
fluctuations, general economic and political conditions and the
uncertainty surrounding the Covid-19 pandemic and its impact on
NatWest Group. These and other factors, risks and uncertainties
that may impact any forward-looking statement or NatWest Group
plc's actual results are discussed in NatWest Group plc's UK 2019
Annual Report and Accounts (ARA), NatWest Group plc's Interim
Results for Q1 2020 and NatWest Group plc's Interim Results for H1
2020 and materials filed with, or furnished to, the US Securities
and Exchange Commission, including, but not limited to, NatWest
Group plc's most recent Annual Report on Form 20-F and Reports on
Form 6-K. The forward-looking statements contained in this document
speak only as of the date of this document and NatWest Group plc
does not assume or undertake any obligation or responsibility to
update any of the forward-looking statements contained in this
document, whether as a result of new information, future events or
otherwise, except to the extent legally required.
Legal Entity Identifier: 2138005O9XJIJN4JPN90
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