BAWAG Group today announces the signing of a transaction to acquire Hamburg-based Barclays Consumer Bank Europe from Barclays Bank Ireland PLC.
The acquisition will expand BAWAG Group’s footprint in the DACH/NL region and position it for future growth in one of the bank’s core markets. As of 31 March 2024, Barclays Consumer Bank Europe had gross assets of € 4.7 billion primarily comprising of card and loan receivables, of which approximately € 2 billion are credit card receivables. BAWAG Group will work with the current leadership team to continue growing its Retail business in Germany and Austria.
The acquisition creates long-term value to BAWAG’s franchise, with an expected profit before tax contribution of greater than € 100 million in 2027 once the deal is fully integrated. The CET1 impact of the transaction is expected at ~140 basis points. An overview of the acquisition is available on BAWAG Group’s website (www.bawaggroup.com/IR).
The transaction, subject to customary closing conditions, including regulatory approvals, is expected to occur in Q4 2024 / Q1 2025.
“We are excited about the acquisition of Barclays’ German consumer lending business and the many opportunities this presents for the Group. This is a great strategic fit in terms of product offering, market presence, customer base, and team members with deep credit card expertise based in Hamburg. This acquisition provides us with a German consumer lending platform focused on credit cards, personal loans, and savings products across a large and diverse customer base. We look forward to welcoming the whole team and building on the strong foundation that has been established. This is the second acquisition we have signed in 2024, planting the seeds for continued profitable growth in the years ahead“, comments Anas Abuzaakouk, CEO of BAWAG Group.
“The purchase of our franchise by BAWAG Group reiterates the successful business our teams have created in the German market over the past few decades. With BAWAG Group’s financial strength, digital know-how and ambitions behind us we will further strengthen our foundation and capture opportunities ahead”, comments TobiasGrieß, CEO Barclays Consumer Bank Europe.
About Barclays Consumer Bank Europe
Barclays Consumer Bank Europe has been operating successfully in Germany for more than 30 years and is one of the leading providers of credit cards with a genuine credit function. The company’s other business areas include consumer loans, installment purchase financing via the online retailer Amazon and overnight money accounts. Further information can be found at www.barclays.de.
About BAWAG Group
BAWAG Group AG is a publicly listed holding company headquartered in Vienna, Austria, serving 2.1 million retail, small business, corporate, real estate and public sector customers across Austria, Germany, Switzerland, Netherlands, Western Europe, and the United States. The Group operates under various brands and across multiple channels offering comprehensive savings, payment, lending, leasing, investment, building society, factoring and insurance products and services. Our goal is to deliver simple, transparent, and affordable financial products and services that our customers need.
BAWAG Group’s Investor Relations website https://www.bawaggroup.com/ir contains further information, including financial and other information for investors.
Forward looking statement
This release contains “forward-looking statements” regarding the financial condition, results of operations, business plans and future performance of BAWAG Group. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should,” “would,” “could” and other similar expressions are intended to identify these forward-looking statements. These forward-looking statements reflect management’s expectations as of the date hereof and are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements as actual results may differ materially from the results predicted. Neither BAWAG Group nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this report or its content or otherwise arising in connection with this document. This report does not constitute an offer or invitation to purchase or subscribe for any securities and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This statement is included for the express purpose of invoking “safe harbor provisions”.
