Metro Bank confirms potential acquisition talks with RateSetter

Metro Bank PLC (LON:MTRO) today sought to respond to recent press speculation regarding a potential acquisition of Retail Money Market LTD and its subsidiaries (“RateSetter”).

Metro Bank says it regularly assesses various opportunities in the market and accordingly confirms that it has entered in to a period of exclusivity with RateSetter, but discussions regarding the potential acquisition are at an early stage.

RateSetter is a UK focused peer-to-peer lender whose distribution platform could accelerate Metro Bank’s stated strategy to grow its unsecured consumer lending book.

Metro Bank notes that there can be no certainty at this stage that a formal agreement will be reached, nor as to the terms of any agreement.

Let’s recall that, as per a recent trading update, Metro Bank registered Q1 total deposits of £14,554 million, up £77 million since 31 December 2019, reflecting growth in retail savings accounts, despite a reduction in fixed term deposit rates to more normalised levels in the market. Total deposits remained stable in April.

Metro Bank saw Q1 total net loans amount to £14,512 million, £169 million below the 31 December position, following proactive management of lending growth. The loan to deposit ratio reduced to 100% at the end of the quarter.

Capital and MREL ratios at the end of Q1 remain in excess of regulatory minima following close control of growth in risk weighted assets (RWAs). Liquidity coverage ratio was again strong, closing the quarter above 197% reported at December 2019.