Barclays PLC has announced the sale of its German consumer finance business, Consumer Bank Europe, to BAWAG P.S.K., a subsidiary of BAWAG Group AG. The sale includes certain assets and liabilities, with Consumer Bank Europe being a diversified retail banking business serving customers in the German and Austrian markets. The transaction is expected to release approximately €4.0bn of Risk-Weighted Assets (RWAs), increasing Barclays' Common Equity Tier 1 (CET1) ratio by approximately 10 basis points upon completion.

The sale is anticipated to occur within six to nine months, subject to regulatory approvals and court sanctions. Francesco Ceccato, CEO of Barclays Europe, stated, "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 move will allow Barclays Europe to focus on its Corporate and Investment Banking and Private Banking businesses, while remaining committed to its broader German and European operations.

The transaction is in line with Barclays' strategy presented at the Investor Update on 20 February 2024. The company's vision is to be the UK-centred leader in global finance, with a diversified bank offering comprehensive UK consumer, corporate, wealth and private banking franchises, a leading investment bank, and a strong, specialist US consumer bank. For further information about Barclays, please visit their website home.barclays.