CaixaBank and Barclays Bank PLC have agreed the sale of Barclays Bank SAU, which includes the retail, wealth management and corporate banking businesses of the British bank in Spain.
As a result of this transaction, CaixaBank will consolidate its leadership in Spain, gaining approximately 550,000 new customers, mainly from the retail banking and private and personal banking divisions, as well as a network of 270 branches and approximately 2,400 employees.
Barclays continues to be committed to Spain, but it will focus on the areas where it has a clear competitive advantage: Barclaycard and the investment banking business.
CaixaBank and Barclays Bank PLC agreed the acquisition of Barclays Bank SAU, which manages the retail, wealth management and corporate banking businesses of the British bank in Spain for EUR 800 million. The final price will be adjusted according to the net asset value of Barclays Bank SAU at the end of the year.
The execution of the sales agreement is scheduled for the end of the year and is subject to obtaining authorisation from the competent agencies and regulatory entities. The agreement excludes Barclays' Spanish investment banking business and Barclaycard. Barclays Bank PLC will continue to operate these businesses in Spain.
As a result of this transaction, CaixaBank, which is chaired by Isidro Fainé and led by the CEO Gonzalo Gortázar, will consolidate its leadership at Spain, with approximately 555,000 new clients, mainly from the retail and private and personal banking businesses, and a network of 270 branches and approximately 2,400 employees.
Barclays Bank SAU has assets of EUR 21,600 million. At June 2014, it had net loans worth EUR 18,400 million, customer deposits of EUR 9,900 million and assets under management of EUR 4,900 million. The financial institution has a default ratio below the average in the sector and an increased solvency rate, demonstrating the high quality of its assets and its sound management.
Accelerate organic growth
Isidro Fainé, chairman of CaixaBank, states that the acquisition "will bring a very qualified, professional team focused on providing a high quality service to its customers, which is a goal that it has in common with CaixaBank, whose business model is based on a large network of branches (the biggest in the Spanish financial services industry) and personalised advisory services tailored to each customer's needs". "The union of both banks will give Barclays Bank and "la Caixa" customers an improved service and a wide range of products", added Isidro Fainé.
Gonzalo Gortázar, CEO of CaixaBank, pointed out that "this acquisition will enable us to enhance our personal and private banking businesses in Spain, strengthening our advisory offer to our customers, and will enable us to accelerate organic growth due to the improving economic context". He also pointed out that "CaixaBank has experience in consolidating entities with high private and personal banking" and cited the consolidation of Morgan Stanley's private banking business in Spain in 2008, and, more recently, those at Banca Cívica and Banco de Valencia.
Greater opportunity to grow
Commenting on transaction, Anthony Jenkins, Group Chief Executive, Barclays, said: "We announced Barclays' strategy update in May this year, creating the Barclays Non-Core cluster containing, amongst others, our Spanish retail banking business. We were clear that this business, while not central to Barclays' strategy, could be attractive to another owner and today's announcement reflects that perspective. Under the ownership of CaixaBank, a leader in retail banking in Spain, these businesses will have a greater opportunity to grow and thrive".
"I would like to thank our colleagues in Spain for their hard work and commitment to customers over many years and want to be clear that Barclays continues to be committed to its remaining businesses in Spain. In future, our offering will be focused on Barclaycard and the Investment Bank where we have a clear competitive advantage."
After the agreement has been signed, the teams will be consolidated a process that is expected to take a few months. The purpose of this process is to combine the best of both models and corporate cultures.
Barclays is an international financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth management with an extensive presence in Europe, the Americas, Africa and Asia. Barclays' purpose is to help people achieve their ambitions in the right way.
With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 135,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.
For further information about Barclays, please visit our website www.barclays.com.
CaixaBank is a consolidated financial group admitted for trading. It has banking and insurance businesses together with a business which invests in international banks and leads the Spanish market with a firm commitment to national and international growth thanks to its proven experience in investments in the banking industry.
CaixaBank, chaired by Isidro Fainé and led by CEO Gonzalo Gortázar, has 13.6 million customers, a network of 5,695 branches and 31,574 employees. It is the number one retail bank thanks to its sizeable sales business, its accurate and anticipatory risk management and its ongoing efforts in innovation.