Barclays(US:BCS) Crowdfund Insider·2025-10-29 11:48Core Viewpoint - Barclays PLC's US consumer banking subsidiary, Barclays Bank Delaware, is acquiring Best Egg, Inc. for $800 million, pending regulatory approvals and customary conditions [1] Group 1: Acquisition Details - Best Egg is a US D2C personal loan origination platform focused on prime borrowers, having facilitated over $40 billion in personal loans since its inception in 2013 [1][2] - The acquisition is expected to enhance USCB's franchise by acquiring digital and risk capabilities in the US consumer finance market [3] - The consideration for Best Egg represents a high-single digit Price/Earnings multiple [3] Group 2: Financial Impact - Best Egg is projected to facilitate over $7 billion in personal loan originations in the current year, servicing approximately $11 billion in personal loans [2] - The acquisition is expected to be accretive to USCB's Return on Tangible Equity (RoTE) in 2027, supporting a mid-teens RoTE target post-2026 [3] - The transaction is estimated to result in an approximate 6 basis points increase in the Group's CET1 ratio in Q2 2026, consuming about 16 basis points of Group CET1 capital upon completion [3] Group 3: Strategic Fit - Best Egg complements USCB's partnership-driven credit card business, which offers unsecured personal lending through co-brand card partner programs [2] - Barclays plans to retain a small portion of Best Egg's new lending flow on its balance sheet following the acquisition [2]