February 23, 2018 / 4:08 PM / 4 months ago

Metro Bank buys $731m mortgage portfolio

LONDON, Feb 23 (Reuters) - Britain’s Metro Bank is to acquire a 523 million pound ($730.94 million) book of mortgages from buy-to-let mortgage provider Capital Home Loans, the bank said on Friday.

Craig Donaldson, Metro Bank’s chief executive, said the move shows the bank’s ability to take advantage of opportunities within its risk appetite.

“This high-quality loan portfolio further strengthens our high growth, organic business model and complements our conservative risk appetite,” he said in a statement.

Metro Bank on Wednesday reported its first annual profit, raising its 2020 targets and saying it would open 12 branches this year, creating 900 jobs.

The loan book purchase announced on Friday will help the lender achieve its new goal of a loans to deposits ratio of 85 to 90 percent by 2020, up from the previously stated target of around 85 percent.

The deal, financed using cash from the bank’s existing resources, is expected to complete on March 1. ($1 = 0.7155 pounds) (Reporting by Emma Rumney, editing by Lawrence White)

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