LONDON (ShareCast) - (Sharecast News) - Barclays said on Thursday that it has agreed to sell its German consumer finance business to Austrian bank Bawag Group.
Bawag will buy Consumer Bank Europe for a "small premium" to net assets, payable in cash on completion. The sale is expected to release around €4.bn of risk-weighted assets, increasing Barclays' CET1 ratio by about 10 basis points on completion, which is expected to occur within six to nine months.

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 the end of March, it had gross assets of €4.7bn, mainly comprising card and loan receivables.

Francesco Ceccato, chief executive officer of 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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