Metro Bank said its new new residential mortgages fell by more than a third after selling its £2.5 billion loan portfolio portfolio, but added that its “hub for professional mortgages continues”.
Challenger Bank said its retail mortgages fell 34 per cent to £5.1 billion after selling major home loans to Natwest in July.
But it added in its annual report: “The hub for professional mortgage loans continues after recent investments repositioning the mortgage business and enhancing product offerings.
“Metro Bank’s operating model is tailored to more complex underwriting volumes, which enables the Group to meet the needs of more customers and expand underserved markets while providing improved risk-adjusted benefits.”
It added that mortgages remain the largest part of its loan book, accounting for 56%.
The loan provides a series of purchase loans to new landlords and limited companies.
Yesterday, the company also sold £584 million in unsecured personal loans to undisclosed buyers.
“The transaction creates additional loan capacity, allowing Metro banks to continue to shift towards higher-yield corporate, commercial and small- and medium-sized enterprise loans, as well as professional mortgage loans,” the bank said.
At the end of December, its overall arrears rose to 5.6% from 3.8% a year ago, driven by the “runoff of retail mortgage asset sales and unsecured personal loan portfolios.”
The lender lost £212.2 million from £30.5 million in the previous year.
It added that its full-year after-tax profit was £42.5 million higher than £29.5 million in the same period.
“We have made significant progress in creating a simpler, more agile bank and continue to make a strategic shift to corporate, commercial and small- and small-scale enterprise loans and professional mortgages at a rate, which is a compelling opportunity in a market with under-markets,” said Daniel Frumkin, CEO of Metro Bank.
