Barclays to Exit Entercard JV With $273M Sale to Swedbank

Core Insights - Barclays PLC has agreed to sell its stake in Entercard Group to Swedbank AB for SEK 2.6 billion ($273 million), with completion expected by year-end pending regulatory approvals [1][10] - The sale aligns with Barclays' strategy to streamline operations and exit non-core markets, following previous divestitures [2][11] - The transaction is expected to release £900 million of risk-weighted assets, increasing Barclays' common equity tier 1 (CET1) ratio by four basis points [3][10] Barclays' Strategic Focus - The disposal of Entercard is part of Barclays' ongoing strategy to focus on wholesale banking, U.S. and U.K. credit cards, and its domestic retail arm [2] - The sale is modest in size but consistent with Barclays' capital discipline and focus on scalable businesses, providing limited earnings impact but enhancing liquidity [4] Entercard Overview - Entercard, established in 2005, is a leading provider of credit cards and personal loans in the Nordic region, with total assets of SEK 36 billion and equity of SEK 5.2 billion as of March 2025 [5] - The company serves 1.5 million customers and employs around 450 staff [5] Swedbank's Strategic Positioning - Swedbank will gain full ownership of Entercard, which will continue to operate under its brand identity, enhancing its position as the largest card issuer in the Nordics and Baltics [6][7] - The acquisition is viewed as a strategic investment, with potential for integration synergies and revenue growth opportunities from cross-selling [8] Broader Industry Context - Barclays has been actively simplifying its business through various divestitures, including its Germany-based consumer finance business and the acquisition of Tesco's retail banking business [11][12] - The bank's shares have performed well, rallying 50.7% this year, outperforming the industry's growth [13]