Barclays PLC (LON:BARC) has announced that its wholly-owned subsidiary Barclays Principal Investments Limited has entered into an agreement to sell its entire shareholding in its joint venture Entercard Group AB to its joint venture partner, Swedbank AB (publ).
Entercard was established as a joint venture in 2005. Its main activity is to provide consumer credit to customers across Sweden, Norway, Denmark and Finland. As at 31 March 2025, Entercard had total assets of SEK36 billion, primarily comprising card and loan receivables.
Swedbank will acquire BPIL’s shareholding in Entercard at book value (equal to half of the net assets of Entercard, and estimated to be SEK2.6 billion as of 31 March 2025), payable in cash on completion1. The sale is expected to release c.£0.9 billion of RWAs, increasing Barclays’ CET1 ratio by c.4bps on completion2. The Transaction is expected to complete by year-end 2025, following the receipt of relevant buyer regulatory and competition approvals.
Notes:
1. On completion, Entercard will repay the funding, in an amount equivalent to c.£1.2 billion, currently provided by Barclays Bank PLC to Entercard.
2. Based on Barclays’ CET1 ratio as at 30 June 2025.
