NatWest buys Metro Bank mortgage

NatWest has acquired a £2.5 billion mortgage portfolio from Metro Bank, adding around 10,000 customers and marking a strategic move to grow its retail business amid recent challenges. This acquisition follows NatWest's deal to purchase Sainsbury's retail banking assets, reflecting CEO Paul Thwaite's ambitions to expand following a tumultuous year. Despite a 15% drop in operating profit and lower net interest income due to decreasing interest rates, NatWest increased its interim dividend by 9% to 6p per share, signaling confidence in future growth. Meanwhile, Metro Bank aims to enhance its balance sheet and shift focus to more profitable lending markets through this sale. The bank's recent performance indicates pressure from a stable interest rate environment, but some positive recovery signs were noted in the second half of the year. Both banks are navigating a challenging financial landscape as they adjust their strategies to maintain profitability and growth.