Barclays enters talks to acquire Metro Bank mortgage book

The £3 billion mortgage portfolio is up for sale to strengthen the challenger bank's capital position

Barclays enters talks to acquire Metro Bank mortgage book

High street bank Barclays has reportedly started negotiations to purchase Metro Bank’s portfolio of residential mortgages worth £3.74 billion.

According to a report by Sky News, the potential deal will be part of a broader financial restructuring aimed at saving Metro Bank from collapse.

More than 90% of Metro Bank’s shareholders have recently approved a funding package worth £925 million, which will see Colombian billionaire Jaime Gilinski Bacal become a majority shareholder with a 53% stake. Last month, the bank also secured a £325 million capital raise, alongside £600 million of debt refinancing.

In a previous report, the embattled bank’s chief executive, Daniel Frumkin, had indicated that Barclays is among the possible buyers of its mortgage portfolio that was put up for sale to strengthen its capital position.

Also reported to have shown interest in the sale are NatWest Group and Lloyds Banking Group, which – like Barclays – are two of the UK’s largest mortgage lenders.

A deal, according to Sky News, is likely to be struck by the end of the year.

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