Barclays Sells Italian Loan Portfolio to IBL Banca
October 12 2016 - 7:21AM
Dow Jones News
By Razak Musah Baba
LONDON--Barclays PLC (BARC.LN) has agreed to sell a portfolio of
salary secured loans in Italy to IBL Banca SpA as part of the
bank's plan to exit non-strategic assets and businesses.
The lender said the portfolio forms part of Barclays Non-Core
and comprises about 260 million pounds ($319 million) of gross
receivables.
The sale will reduce non-core risk weighted assets by a further
GBP170 million and will be broadly neutral to Barclays' CET1 ratio
on completion, it said.
Last week, the British bank announced a deal to sell its
Egyptian retail and corporate bank to Morocco's Attijariwafa Bank
SA.
In May, Barclays raised GBP603 million by selling a 12.2% stake
in its Barclays Africa business. The bank is currently trying to
shed another tranche of its stake in Barclays Africa.
"Today's announcement further highlights the momentum we have in
Barclays Non-Core and the progress we're making," said Harry
Harrison, head of Barclays Non-Core.
The sale is subject to regulatory approvals and is expected to
be completed in the first quarter of 2017.
Barclays completed the sale of its Italian retail banking
network in August, and continues to operate investment banking and
corporate banking in Italy.
Barclays said its residual mortgage portfolio and other non-core
retail, wealth and corporate loans in Italy will remain part of
Barclays Non-Core, with the intention to exit or rundown over
time.
Max Colchester contributed to this article.
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
October 12, 2016 07:06 ET (11:06 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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