The major British bank could sell its German business.
(Photo: Reuters)
Frankfurt, Hamburg The major British bank Barclays is considering selling its private customer business in Germany. The Handelsblatt learned this on Thursday from financial circles. Negotiations with interested parties are currently underway.
The German consumer business includes deposits, loans and cards. According to the information, the local investment banking business is not affected. The Bloomberg news agency first reported on the plans.
According to the financial service, the financial institution could aim for a valuation of around 500 million euros for the former Barclaycard Germany. The Hamburg-based subsidiary has around 700 employees. According to Bloomberg information, interest can be expected from other institutions, but also from private equity funds that already own a bank.
Those responsible are still discussing various options, as was further learned from financial circles. It could also be that Barclays scraps plans for a deal. A spokesman for the bank did not want to comment on the subject when asked by the Handelsblatt.
Barclays’ German retail division has two million customers. According to the company, the loan book was £4.3 billion (€5 billion) at the end of 2022. The price realized with the sale is likely to be based on the profitability of the business, Bloomberg reported, citing people familiar with the considerations. The division is profitable.
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The subsidiary cooperates with Amazon in Germany on installment loans. Amazon may have to find a new partner for a sale.
Barclays recently put its loan portfolio in Italy on sale. The Boston Consulting Group was also hired to take a critical look at the corporate strategy.
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