Upon completion, the transaction will result in an estimated £11m gain on sale.
This will create additional lending capacity for the high-street challenger bank, which aims to focus on areas such as commercial, corporate, and SME lending, as well as specialist mortgages.
The performing unsecured personal loan portfolio has a weighted average rate of circa 5.3% with an average remaining fixed-rate term of around 2.4 years.
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“The sale of our unsecured personal loan book is in line with our strategy and positions Metro Bank strongly for future growth,” said Daniel Frumkin, CEO at Metro Bank.
“Upon completion, the transaction is capital accretive and will allow us to further optimise our balance sheet as we strengthen our position as a specialist lender of choice.”
In January, the bank upped its maximum LTV on large commercial mortgages from 70% to 75%, noting that it was “serious about supporting businesses”.
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