Barclays has agreed a deal to sell its German consumer finance business, Consumer Bank Europe, to Austrian bank, BAWAG.

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 of 31 March this year, Consumer Bank Europe had gross assets of €4.7bn, primarily comprising card and loan receivables.

BAWAG is to acquire Consumer Bank Europe for a small premium to net assets, payable in cash on completion. The sale is expected to release €4bn of RWAs, increasing Barclays’ CET1 ratio by 10 basis points on completion.

Completion of the sale remains subject to certain conditions, including regulatory approval.

CEO of Barclays Europe, Francesco Ceccato, 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.”

Barclays expects the acquisition to occur “within six to nine months” and also confirmed that the timing of completion will not impact the bakn’s previously announced capital return plans.

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