From Morningstar: 2024-07-26 07:13:00

NatWest saw positive momentum, raising its annual outlook and buying a mortgage portfolio from Metro Bank. NatWest’s shares jumped 7.5% in London, outperforming the FTSE 100. Metro Bank’s shares climbed 5.8%. NatWest reported a decline in total income and pretax profit, with impairment charges falling. Net interest margin improved to 2.10%. CET1 capital ratio was steady at 13.6%. NatWest raised its dividend by 9.1% and expects a return on tangible equity above 14%.

In response to the news, Metro Bank agreed to sell a £2.5 billion mortgage portfolio to NatWest, with a weighted average loan to value of 62%. Metro Bank mentioned the deal would shift its balance sheet for higher returns. The transaction is earnings, NIM, and capital ratio accretive, enhancing lending capacity. NatWest expects the transaction to reduce its CET1 ratio by less than 10 basis points.



Read more at Morningstar: NatWest Shares Up as Profits Beat Expectations