31 August 2014
Barclays PLC
Barclays announces further Barclays Non-Core disposals
Barclays Bank PLC ("Barclays") has today agreed to sell its Retail Banking, Wealth and Investment Management and Corporate Banking businesses in Spain (the "Spanish Businesses") to CaixaBank S.A. ("CaixaBank"). Furthermore, Barclays has completed the sale of its UAE Retail Banking business to Abu Dhabi Islamic Bank.
Sale of Spanish Businesses to CaixaBank
CaixaBank will acquire Barclays Bank SAU and certain subsidiaries, which represent total assets of €22.2bn and liabilities of €20.5bn as at 30 June 2014, for a consideration of €800m (approximately £630m), payable in cash upon completion and subject to adjustment based on the statutory Net Asset Value as at 31 December 2014. The financial impacts of this transaction on Barclays are dependent, inter alia, on the profitability of the businesses and foreign exchange movements up to completion, but are estimated as follows:
Risk Weighted Assets |
Proforma decrease of £8bn on 30 June |
Fully Loaded CET1 |
Proforma increase of 12 bps on 30 June 2014 FL CET1 ratio |
Leverage Exposure |
Decrease of £15bn on 30 June |
BCBS Leverage Ratio |
Proforma increase of 2 bps on 30 June 2014 estimated BCBS Leverage ratio |
Loss after tax on transaction |
c.£(0.4)bn to be reported in Q3 2014; plus c.£(0.1)bn upon completion |
Tangible Net Asset Value ("TNAV") per share |
Proforma decrease of c.4 pence on 30 June 2014 reported TNAV per share¹ |
On completion, approximately 2,400 Barclays employees and 262 branches will transfer to CaixaBank. Completion is subject to, amongst other things, regulatory approvals and is expected to occur at or shortly after the year end.
Sale of UAE Retail Banking business to Abu Dhabi Islamic Bank
On 31 August 2014, Barclays completed the sale of its UAE Retail Banking business to Abu Dhabi Islamic Bank at an estimated pre-tax gain of £119m.
1. TNAV impact of c.£(0.7)bn differs from loss after tax of c.£(0.5)bn as c.£0.2bn of profit after tax relates to the recycling of currency translation and hedge accounting amounts from equity to income with no benefit to TNAV.
Barclays' Investment Bank and Barclaycard operations are not part of the disposal of the Spanish Businesses, while the UAE transaction is confined to a portfolio of mortgages, unsecured credit and deposits. We remain committed to our retained businesses in these territories.
Antony Jenkins, Barclays Group Chief Executive, said: "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.
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."
- Ends -
For further information, please contact:
Barclays
Investor Relations Media Relations
Charlie Rozes Giles Croot
+44 (0) 20 7116 5752 +44 (0) 20 7116 6132
About Barclays
Barclays is an international financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth management with an extensive presence in Europe, the Americas, Africa and Asia. Barclays' purpose is to help people achieve their ambitions - in the right way.
With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 135,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.
For further information about Barclays, please visit our website www.barclays.com.
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