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Michele Maatouk Sharecast News
12 Oct, 2016 12:11 12 Oct, 2016 12:16

Barclays sells Italian loan portfolio

Barclays has agreed the sale of a portfolio of salary secured loans in Italy to IBL Banca as it looks to exit its non-strategic businesses.

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Barclays said the portfolio forms part of its Non-Core and comprises around £260m of gross receivables. The sale will cut non-core risk-weighted assets by a further £170m or so and will be broadly neutral to the bank’s Tier 1 common capital ratio on completion.

Harry Harrison, head of Barclays Non-Core, said: “Last week we announced agreements to sell our Egyptian bank and our UK Trust business. Today’s announcement further highlights the momentum we have in Barclays Non-Core and the progress we’re making.”

The sale is expected to complete in the first quarter of next year.

The bank completed the sale of its Italian retail banking network in August 2016 and continues to operate investment banking and corporate banking in Italy.

Barclays’ 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.

At 1215 BST, Barclays shares were down 0.6% to 171.40p.

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