Acquisition

RNS Number:0250S
Abbey National PLC
26 February 2002


First National agrees to acquire commercial mortgage business from Sun Bank


First National Commercial Banking, the commercial mortgage arm of Abbey
National, has agreed to buy the commercial mortgage book of Sun Bank. As at 31
December 2001, the value of the net assets corresponding to the commercial
mortgage book being acquired was £133.5m. Sun Bank is a wholly-owned subsidiary
of Portman Building Society.



First National is acquiring the commercial mortgage book only and the
administration will transfer from Portman Building Society to First National in
Harrow. The residential mortgage and loan book will remain with Sun Bank.



Sun Bank commercial mortgage customers will be advised of the change of
ownership over the next few weeks. The transfer to First National will not
affect the terms and conditions of their mortgages.



Jeff Watson, Director of First National Commercial Banking said: "We are
delighted with this deal as it complements our existing business mortgage book
in terms of both customer profile and asset quality. We are already one of the
leading players in commercial mortgages and this acquisition confirms our
commitment to the market."



Peter Lucas, Chief Executive, Sun Bank said: "When Portman Building Society
acquired Sun Bank last year, they indicated that commercial lending did not fit
with their ambitions for the business. This agreement with First National means
that we can continue to focus on the growth of our residential lending business."




The sale is expected to be completed on 1 March 2002.



                                     -ends-



For further information, contact:

Daniel Schraibman, Abbey National Media Relations

Tel: [phone]

[e-mail]



Rob Askham, Abbey National Investor Relations

Tel: [phone]

[e-mail]



About First National Commercial Banking

First National Commercial Banking is part of the Business Banking and Finance
division of the Abbey National Group. The division has over 150,000 customers in
the UK and conducts business with 1,300 brokers and intermediaries. FNCB
provides commercial mortgages for a range of businesses including offices, light
industrial units, restaurants, retail outlets, public houses, care homes, hotels
and guest houses.



Other business services provided by Abbey National include:

•        Free business banking indefinitely (within certain transaction limits)
         and in credit interest of 3% gross aer

•        Asset Finance - direct and broker introduced asset finance from £10,000
         to £10 million

•        Business Equipment Leasing - flexible finance for hiring or leasing
         business equipment

•        Country Capital - mortgages for farms, farm buildings, rural
         diversification projects and golf courses

•        Invoice Finance - invoice discounting and factoring for optimum
         cashflow management: invoices are paid by First National on day of 
         issue

•        State Securities - turnaround finance

•        Block Discounting - receivables finance



For information, visit: www.anbusinessbank.co.uk



About Portman Building Society

Portman is the 4th largest building society in the UK with assets of over £9bn.



                      This information is provided by RNS
            The company news service from the London Stock Exchange