Barclays sells German consumer finance business to Austria’s BAWAG to refocus on “key businesses”
British bank Barclays is selling its German consumer finance business to BAWAG, one of the largest banks in Austria, in the continued simplification of its business operations.
Barclays sells German consumer finance business
The transaction, which is for an undisclosed sum, is to be completed with “a small premium to net assets, payable in cash”, according to the bank’s statement and is expected to close “within six to nine months”, subject to regulatory approval and other customary closing conditions.
Barclays first revealed its plans to part ways with the division, through which it operates credit cards, unsecured personal loans and deposit services throughout Germany and Austria, during the publication of its financial results for 2023 – when it was forced to axe 5,000 jobs – in February.
In this, the bank said the sale aligned with its “ambition to simplify Barclays and support our focus on growing our key businesses”, with the deal expected to release around €4.0 billion in risk-weighted assets (RWAs).
A restructuring notice posted the same day defined these key businesses as Barclays UK, Barclays UK Corporate Bank, Barclays Private Bank and Wealth Management, Barclays Investment Bank and Barclays US Consumer Bank.
Barclays previously shifted approximately $1.1 billion in RWAs from its US Consumer Bank in February, when it sold the division’s credit card debt to asset management giant Blackstone.
Speaking on the bank’s latest deal, Francesco Ceccato, CEO of Barclays Europe, describes the buyer of its German consumer finance business as “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,” he adds. “We remain committed to our broader German and European operations and look forward to continued growth in the region during 2024 and beyond.”
