International financial services provider Barclays Bank PLC revealed on Monday that it is continuing to dispose its non-core businesses, having agreed the sale of its Retail Banking, Wealth and Investment Management and Corporate Banking businesses in Spain to Spanish financial services company CaixaBank S.A for a consideration of EUR800m.
The bank stated that CaixaBank will acquire its Spanish business Barclays Bank SAU and certain of its subsidiaries, which represent total assets of EUR22.2bn and liabilities of EUR20.5bn as at 30 June 2014. CaixaBank will pay the purchase amount of EUR800m in cash upon completion, subject to adjustment based on the statutory Net Asset Value as at 31 December 2014. Barclays Investment Bank and Barclaycard operations are not included in the sale of the Spanish Businesses.
According to Barclays, the financial impacts of this transaction are dependent, inter alia, on the profitability of the businesses and foreign exchange movements up to completion. It is expected that on completion, approximately 2,400 Barclays employees and 262 branches will transfer to CaixaBank. Completion is expected to occur at or shortly after the year end and is subject to regulatory approvals.
In addition, Barclays said it has completed the sale of its UAE Retail Banking business to Abu Dhabi Islamic Bank at an estimated pre-tax gain of GBP119m. The UAE transaction is confined to a portfolio of mortgages, unsecured credit and deposits. Barclays added that it remains committed to its retained businesses in these territories.
Barclays Group chief executive, Antony Jenkins, commented: “I am pleased to be announcing further progress on Barclays Non-Core asset reductions through the transactions announced today. We remain on track to rebalance Barclays as part of our strategy to deliver sustainable returns for our shareholders.”
Jenkins added “I want to take this opportunity to thank our colleagues in the Spanish Retail Banking, Corporate Banking and Wealth and Investment Management businesses, as well as our Retail Banking colleagues in the UAE, for their hard work and professionalism over many years.”