Britain's Metro Bank decides not to sell mortgage book
Reuters
Published Dec 15, 2023 17:29
Updated Dec 15, 2023 19:31
LONDON (Reuters) -Britain's Metro Bank said on Friday it had abandoned its planned sale of a 3 billion pound ($3.8 billion) mortgage portfolio, citing market conditions.
The bank began exploring the potential sale in October, as part of urgent moves to bolster its balance sheet that led to a 925 million pound rescue package.
Metro said on Friday that this refinancing, which was backed by Colombian billionaire Jaime Gilinski, had given it renewed balance sheet strength.
"Given the prevailing market environment, it is in the best interests of shareholders to retain the existing loan portfolio," it said in a statement.
Metro announced a cost reduction plan in November that could see it lay off 20% of its workforce and axe some of its biggest customer benefits, including seven-day opening hours.
Sky News reported last month that Barclays (LON:BARC) was in exclusive talks to buy the mortgage book. Other potential contenders had included Spain's Santander (BME:SAN).
($1 = 0.7868 pounds)
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Written By: Reuters
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