Metro Bank confirms potential loan portfolio sale
In response to speculation, Metro Bank has today confirmed that it is considering a "potential disposal of a loan portfolio".
The Bank said that discussions regarding the potential sale of a loan portfolio are taking place but that there is no certainty that an agreement will be reached.
Speculation that Metro Bank was planning to offload part of its loan book began in January after it miscalculated the risk level of a large number of commercial loans, leaving a £350m shortfall on its balance sheet.
Metro Bank revealed that the FCA and PRA were investigating the circumstances surrounding an accounting error which led to the £350m capital shortfall.
The Bank announced its intention to raise £350m in Feburary and later exceeded its target by raising £375m in new funding through a discounted share offer.
Metro is rumoured to be planning a £500m potential deal with Cerberus Capital Management.
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