Alison Rose, CEO of NatWest

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.£3.1bn represents a 2.7% premium on gross book value. The impact of the transaction, based on NatWest’s CET1 ratio at 30 September 2020, equates to a reduction of around 15 basis points.

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.”