On Wednesday, January 29, British Metro Bank announced its early discussions regarding a possible sale of its performing consumer loan portfolio. The bank is shifting its focus towards high-yield commercial, corporate, and small to medium enterprise lending.
This potential divestment is anticipated to improve the bank's performance ratios, including the CET1, a crucial indicator of a bank's financial strength.
Established in 2010 to challenge the dominance of major British banks, Metro Bank has been restructuring its operations and divesting certain assets to strengthen its financial position following a rescue deal in October 2023.
In July, it projected a return to profitability in the fourth quarter following a cash infusion from the sale of its residential mortgage book valued at $3.1 billion to NatWest.