Barclays has successfully completed the sale of its consumer finance operations in Germany to BAWAG PSK, a subsidiary of Austria's BAWAG Group AG. This strategic move marks a significant step in Barclays' efforts to optimize its business structure. The transaction involved the transfer of specific assets and liabilities associated with the retail banking sector, encompassing credit card services, consumer loans, and deposit products tailored for customers in both Germany and Austria.

The financial details surrounding this deal have not been disclosed. However, Barclays revealed that the sale concluded at a slight premium over the tangible book value. As a result of this divestiture, Barclays anticipates releasing approximately €4 billion ($4.1 billion) in risk-weighted assets, which is expected to positively impact the bank’s CET1 ratio by roughly 10 basis points. This development underscores Barclays' commitment to enhancing its core business focus, as outlined during its Investor Update earlier this year.

This strategic decision aligns with Barclays' broader objectives to streamline operations and concentrate on areas with significant growth potential. By reallocating resources and capital, Barclays aims to strengthen its competitive position in the global financial market. Moreover, the agreement ensures continuity and expansion of retail banking services in the DACH/NL region under the leadership of BAWAG Group. This transition promises a robust future for both Barclays and BAWAG, fostering innovation and customer satisfaction in the financial industry.