TIDMBARC TIDM96ES
RNS Number : 4580Q
Barclays PLC
31 August 2014
31 August 2014
Barclays PLC
Barclays announces further Barclays Non-Core disposals
Barclays Bank PLC ("Barclays") has today agreed to sell its
Retail Banking, Wealth and Investment Management and Corporate
Banking businesses in Spain (the "Spanish Businesses") to CaixaBank
S.A. ("CaixaBank"). Furthermore, Barclays has completed the sale of
its UAE Retail Banking business to Abu Dhabi Islamic Bank.
Sale of Spanish Businesses to CaixaBank
CaixaBank will acquire Barclays Bank SAU and certain
subsidiaries, which represent total assets of EUR22.2bn and
liabilities of EUR20.5bn as at 30 June 2014, for a consideration of
EUR800m (approximately GBP630m), payable in cash upon completion
and subject to adjustment based on the statutory Net Asset Value as
at 31 December 2014. The financial impacts of this transaction on
Barclays are dependent, inter alia, on the profitability of the
businesses and foreign exchange movements up to completion, but are
estimated as follows:
Risk Weighted Assets Proforma decrease of GBP8bn
on 30 June
------------------------------ -------------------------------
Fully Loaded CET1 Proforma increase of 12
bps on 30 June 2014 FL
CET1 ratio
------------------------------ -------------------------------
Leverage Exposure Decrease of GBP15bn on
30 June
------------------------------ -------------------------------
BCBS Leverage Ratio Proforma increase of 2
bps on 30 June 2014 estimated
BCBS Leverage ratio
------------------------------ -------------------------------
Loss after tax on transaction c.GBP(0.4)bn to be reported
in Q3 2014; plus c.GBP(0.1)bn
upon completion
------------------------------ -------------------------------
Tangible Net Asset Value Proforma decrease of c.4
("TNAV") per share pence on 30 June 2014
reported TNAV per share(1)
------------------------------ -------------------------------
On completion, approximately 2,400 Barclays employees and 262
branches will transfer to CaixaBank. Completion is subject to,
amongst other things, regulatory approvals and is expected to occur
at or shortly after the year end.
Sale of UAE Retail Banking business to Abu Dhabi Islamic
Bank
On 31 August 2014, Barclays completed the sale of its UAE Retail
Banking business to Abu Dhabi Islamic Bank at an estimated pre-tax
gain of GBP119m.
1. TNAV impact of c.GBP(0.7)bn differs from loss after tax of
c.GBP(0.5)bn as c.GBP0.2bn of profit after tax relates to the
recycling of currency translation and hedge accounting amounts from
equity to income with no benefit to TNAV.
Barclays' Investment Bank and Barclaycard operations are not
part of the disposal of the Spanish Businesses, while the UAE
transaction is confined to a portfolio of mortgages, unsecured
credit and deposits. We remain committed to our retained businesses
in these territories.
Antony Jenkins, Barclays Group Chief Executive, said: "I am
pleased to be announcing further progress on Barclays Non-Core
asset reductions through the transactions announced today. We
remain on track to rebalance Barclays as part of our strategy to
deliver sustainable returns for our shareholders.
I want to take this opportunity to thank our colleagues in the
Spanish Retail Banking, Corporate Banking and Wealth and Investment
Management businesses, as well as our Retail Banking colleagues in
the UAE, for their hard work and professionalism over many
years."
- Ends -
For further information, please contact:
Barclays
Investor Relations Media Relations
Charlie Rozes Giles Croot
+44 (0) 20 7116 5752 +44 (0) 20 7116 6132
About Barclays
Barclays is an international financial services provider engaged
in personal banking, credit cards, corporate and investment banking
and wealth management with an extensive presence in Europe, the
Americas, Africa and Asia. Barclays' purpose is to help people
achieve their ambitions - in the right way.
With over 300 years of history and expertise in banking,
Barclays operates in over 50 countries and employs approximately
135,000 people. Barclays moves, lends, invests and protects money
for customers and clients worldwide.
For further information about Barclays, please visit our website
www.barclays.com.
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements that are
based on current expectations or beliefs, as well as assumptions
about future events. Generally, the words "will", "may", "should",
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forward-looking statement contained in this document, regardless of
whether that statement is affected as a result of new information,
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and no statement in this document should be interpreted to mean
that the earnings per Share for the current or future years would
necessarily match or exceed the historical published earnings per
Share.
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The company news service from the London Stock Exchange
END
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