LONDON: Barclays PLC today announced that Barclays Bank Ireland has agreed the sale of certain assets and liabilities, which together comprise its German consumer finance business to BAWAG P.S.K., a wholly-owned subsidiary of BAWAG Group AG.
This is another example of disciplined execution against the plan presented at our Investor Update on 20 February 2024.
Consumer Bank Europe is a diversified retail banking business, with established credit card, consumer loan and deposit franchises serving customers in the German and Austrian markets. As at 31 March 2024, Consumer Bank Europe had gross assets of €4.7bn, primarily comprising card and loan receivables.
BAWAG P.S.K. will acquire Consumer Bank Europe for a small premium to net assets, payable in cash on completion. The sale is expected to release c.€4.0bn of RWAs, increasing Barclays’ CET1 ratio by c.10bps on completion. Completion of the sale, which is subject to certain conditions, including regulatory approvals and the sanction of the relevant courts, is expected to occur within six to nine months. The timing of completion does not impact Barclays’ previously announced capital return plans.
Francesco Ceccato, CEO, Barclays Europe said: “The sale of Consumer Bank Europe aligns with our ambition to simplify Barclays. In BAWAG, we believe we have found a strong and committed owner for the business’ journey forwards. This transaction will also allow Barclays Europe to focus on its Corporate and Investment Banking and Private Banking businesses. We remain committed to our broader German and European operations and look forward to continued growth in the region during 2024 and beyond.”