The move aligns with Barclays’ objectives to streamline operations. Credit: pcruciatti/Shutterstock.

Barclays has concluded the sale of its German consumer finance business to Austria’s BAWAG PSK, fully owned by BAWAG Group AG.

The transaction involved a transfer of specific assets and liabilities.

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The divested entity is a diversified retail banking business, with credit card, consumer loan as well as deposit franchises catering to customers in Germany and Austria.

Financial specifics of the deal remain undisclosed. However, the British lender disclosed that the sale was completed at a small premium to the tangible book value.

The disposal is projected to release approximately €4bn ($4.1bn) of risk-weighted assets, which is expected to improve Barclays’ CET1 ratio by around 10 basis points.

This move aligns with Barclays’ objectives to streamline operations and enhance focus on its core businesses, as stated during its Investor Update in February 2024.

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The deal was initially revealed in July of the previous year.

According to the agreement, BAWAG Group agreed to work with the existing leadership team to continue expanding its Retail business in Germany and Austria.

The deal would strengthen BAWAG Group’s presence in the DACH/NL region.

Barclays Europe CEO Francesco Ceccato said: “I’m grateful to everyone who has worked to finalise the deal, including the BAWAG senior executive team and our teams in Consumer Bank Europe. “Barclays Europe will now focus on supporting our institutional, corporate and high net worth clients, where we continue to see significant growth potential.”