Barclays to sell German consumer finance business
The deal is expected to be completed in six to nine months
BARCLAYS is selling its German consumer finance business to Austrian bank BAWAG Group for a small premium to net assets, it said on Thursday (Jul 4).
This comes amid the British lender’s aim to simplify its business. The cash sale by Barclays Europe is expected to release about four billion euros (S$5.8 billion) of risk-weighted assets.
It will also increase the common equity tier-1 ratio – a measure of a company’s capital strength – by about 10 basis points, Barclays said.
The German business, called Consumer Bank Europe, serves customers in the German and Austrian markets and had gross assets of 4.7 billion euros at March-end, mainly in card and loan receivables.
“The sale of Consumer Bank Europe aligns with our ambition to simplify Barclays,” said Francesco Ceccato, Barclays Europe’s chief executive officer (CEO).
The deal would also allow the bank to focus on corporate, investment banking and private banking businesses, the CEO noted.
“We remain committed to our broader German and European operations and look forward to continued growth in the region during 2024 and beyond,” he added.
The deal is expected to be completed in six to nine months, depending on regulatory and legal approvals. REUTERS
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