Barclays has agreed to the sale its Germany banking business to BAWAG, one of Austria’s largest banks.
There has been no official sum given for the sale, however, as of as of 31 March 2024, Barclays Consumer Bank Europe had gross assets of €4.7bn primarily comprising of card and loan receivables, of which approximately €2bn are credit card receivables. BAWAG Group will work with the current leadership team to continue growing its Retail business in Germany and Austria.
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The acquisition will expand BAWAG Group’s footprint in the DACH/NL region and position it for future growth in one of the bank’s core markets.
The acquisition creates long-term value to BAWAG’s franchise, with an expected profit before tax contribution of greater than €100bn in 2027 once the deal is fully integrated.
The transaction, subject to customary closing conditions, including regulatory approvals, is expected to occur in Q4 2024 / Q1 2025
Anas Abuzaakouk, CEO of BAWAG Group, commented: “We are excited about the acquisition of Barclays’ German consumer lending business and the many opportunities this presents for the Group. This is a great strategic fit in terms of product offering, market presence, customer base, and team members with deep credit card expertise based in Hamburg. This acquisition provides us with a German consumer lending platform focused on credit cards, personal loans, and savings products across a large and diverse customer base. We look forward to welcoming the whole team and building on the strong foundation that has been established. This is the second acquisition we have signed in 2024, planting the seeds for continued profitable growth in the years ahead.”
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.”
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