4 July 2024
Barclays PLC
DISPOSAL OF GERMAN CONSUMER
FINANCE BUSINESS
Barclays PLC ("Barclays") today
announces that Barclays Bank Ireland PLC ("Barclays Europe") has
agreed the sale of certain assets and liabilities, which together
comprise its German consumer finance business ("Consumer Bank
Europe") to BAWAG P.S.K., a wholly-owned subsidiary of BAWAG Group
AG ("BAWAG"). 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."
- Ends
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For further information, please
contact:
Investor Relations
Media Relations
Marina
Shchukina
Tom Sullivan
+44 (0) 7385 142
673
+44 (0) 7796 706
678
About Barclays
Our vision is to be the UK-centred
leader in global finance. We are a diversified bank with
comprehensive UK consumer, corporate and wealth and private banking
franchises, a leading investment bank and a strong, specialist US
consumer bank. Through these five divisions, we are working
together for a better financial future for our customers, clients
and communities.
For further information about
Barclays, please visit our website home.barclays
Forward-looking statements
This announcement contains
forward-looking statements within the meaning of Section 21E of the
US Securities Exchange Act of 1934, as amended, and Section 27A of
the US Securities Act of 1933, as amended, with respect to the
Barclays Group. Barclays cautions readers that no forward-looking
statement is a guarantee of future performance and that actual
results or other financial condition or performance measures could
differ materially from those contained in the forward-looking
statements. Forward-looking statements can be identified by the
fact that they do not relate only to historical or current facts.
Forward-looking statements sometimes use words such as 'may',
'will', 'seek', 'continue', 'aim', 'anticipate', 'target',
'projected', 'expect', 'estimate', 'intend', 'plan', 'goal',
'believe', 'achieve' or other words of similar meaning.
Forward-looking statements are based on the current beliefs and
expectations of Barclays' directors,
officers and employees and are subject to
significant risks and uncertainties. Actual outcomes may differ
materially from those expressed in the forward-looking statements.
Factors that could impact the Barclays Group's future financial
condition and performance are identified in Barclays PLC's filings
with the US Securities and Exchange Commission ("SEC") (including,
without limitation, Barclays PLC's Annual Report on Form 20-F for
the fiscal year ended 31 December 2023), which are available on the
SEC's website at www.sec.gov.
Subject to Barclays' obligations under the applicable laws and
regulations of any relevant jurisdiction (including, without
limitation, the UK and the US), in relation to disclosure and
ongoing information, Barclays undertakes no obligation to update
publicly or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.