We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Barclays (BCS) in Talks to Buy Metro Bank's Mortgage Loans
Read MoreHide Full Article
Barclays (BCS - Free Report) has entered into advance talks to acquire a substantial residential mortgage portfolio from Metro Bank. This was first reported by Sky News.
This is part of the broader financial restructuring effort by Metro Bank and will bolster its capital levels. It must be noted that last month, the lender was on the verge of collapse and subsequently clinched a rescue deal that included £325 million in new funding and the refinancing of £600 million of debt.
Lloyds Banking Group plc, NatWest Group plc (NWG - Free Report) and HSBC Holdings (HSBC - Free Report) are some of the other potential buyers of this loan book. This £3 billion portfolio is a major portion of Metro Bank’s roughly £8 billion mortgage portfolio, which largely comprises homeowners in London and the southeast.
The deal, if announced with Barclays, is expected to close by the end of this year. The transaction is expected to complement the company’s acquisition of Kensington Mortgage earlier this year.
Further, in sync with its strategy to improve market share in the U.K., Barclays seems to have made a bid to acquire Edinburgh-based Tesco Bank. This was first reported by Reuters, citing persons familiar with the matter. Tesco Bank was formed in 1997 through a 50-50 joint venture between Royal Bank of Scotland (now known as NatWest Group) and Britain’s large food retailer Tesco Plc. In 2008, Tesco Plc took full ownership of the venture. Barclays is primarily interested in Tesco Bank’s credit card and savings account products. The deal offers an opportunity to cross-sell products to Tesco Plc’s huge retail customer base.
These apart, Barclays is looking at ways to trim expenses. Recently, Reuters reported that the company is planning to reduce costs by $1.25 billion (around 7% of total operating costs incurred in 2022) through the elimination of 1,500-2,000 jobs, specifically in its segment, Group Execution Services.
So far this year, shares of BCS have lost 8.5% on the NYSE against the industry’s 11% rally.
Notably, HSBC is looking to expand in Asia. In sync with this, last month, it announced a deal to acquire Citigroup's (C - Free Report) retail wealth management business in China.
As a result of the sale, Citigroup will transfer assets under management and deposits worth almost $3.6 billion (as of August 2023) and the associated wealth customers in 11 major cities to HSBC Bank China. Upon completion (expected in the first half of 2024), the acquired business will become part of HSBC Bank China’s Wealth and Personal Banking operations. Citigroup will retain its institutional businesses where it has a preeminent position.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Barclays (BCS) in Talks to Buy Metro Bank's Mortgage Loans
Barclays (BCS - Free Report) has entered into advance talks to acquire a substantial residential mortgage portfolio from Metro Bank. This was first reported by Sky News.
This is part of the broader financial restructuring effort by Metro Bank and will bolster its capital levels. It must be noted that last month, the lender was on the verge of collapse and subsequently clinched a rescue deal that included £325 million in new funding and the refinancing of £600 million of debt.
Lloyds Banking Group plc, NatWest Group plc (NWG - Free Report) and HSBC Holdings (HSBC - Free Report) are some of the other potential buyers of this loan book. This £3 billion portfolio is a major portion of Metro Bank’s roughly £8 billion mortgage portfolio, which largely comprises homeowners in London and the southeast.
The deal, if announced with Barclays, is expected to close by the end of this year. The transaction is expected to complement the company’s acquisition of Kensington Mortgage earlier this year.
Further, in sync with its strategy to improve market share in the U.K., Barclays seems to have made a bid to acquire Edinburgh-based Tesco Bank. This was first reported by Reuters, citing persons familiar with the matter. Tesco Bank was formed in 1997 through a 50-50 joint venture between Royal Bank of Scotland (now known as NatWest Group) and Britain’s large food retailer Tesco Plc. In 2008, Tesco Plc took full ownership of the venture. Barclays is primarily interested in Tesco Bank’s credit card and savings account products. The deal offers an opportunity to cross-sell products to Tesco Plc’s huge retail customer base.
These apart, Barclays is looking at ways to trim expenses. Recently, Reuters reported that the company is planning to reduce costs by $1.25 billion (around 7% of total operating costs incurred in 2022) through the elimination of 1,500-2,000 jobs, specifically in its segment, Group Execution Services.
So far this year, shares of BCS have lost 8.5% on the NYSE against the industry’s 11% rally.
Image Source: Zacks Investment Research
Currently, Barclays carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, HSBC is looking to expand in Asia. In sync with this, last month, it announced a deal to acquire Citigroup's (C - Free Report) retail wealth management business in China.
As a result of the sale, Citigroup will transfer assets under management and deposits worth almost $3.6 billion (as of August 2023) and the associated wealth customers in 11 major cities to HSBC Bank China. Upon completion (expected in the first half of 2024), the acquired business will become part of HSBC Bank China’s Wealth and Personal Banking operations. Citigroup will retain its institutional businesses where it has a preeminent position.