Barclays PLC Further Barclays Non-Core disposals (4580Q)

TIDMBARC TIDM96ES

RNS Number : 4580Q

Barclays PLC

31 August 2014

31 August 2014

Barclays PLC

Barclays announces further Barclays Non-Core disposals

Barclays Bank PLC ("Barclays") has today agreed to sell its Retail Banking, Wealth and Investment Management and Corporate Banking businesses in Spain (the "Spanish Businesses") to CaixaBank S.A. ("CaixaBank"). Furthermore, Barclays has completed the sale of its UAE Retail Banking business to Abu Dhabi Islamic Bank.

Sale of Spanish Businesses to CaixaBank

CaixaBank will acquire Barclays Bank SAU and certain subsidiaries, which represent total assets of EUR22.2bn and liabilities of EUR20.5bn as at 30 June 2014, for a consideration of EUR800m (approximately GBP630m), payable in cash upon completion and subject to adjustment based on the statutory Net Asset Value as at 31 December 2014. The financial impacts of this transaction on Barclays are dependent, inter alia, on the profitability of the businesses and foreign exchange movements up to completion, but are estimated as follows:

 
 Risk Weighted Assets            Proforma decrease of GBP8bn 
                                  on 30 June 
------------------------------  ------------------------------- 
 Fully Loaded CET1               Proforma increase of 12 
                                  bps on 30 June 2014 FL 
                                  CET1 ratio 
------------------------------  ------------------------------- 
 Leverage Exposure               Decrease of GBP15bn on 
                                  30 June 
------------------------------  ------------------------------- 
 BCBS Leverage Ratio             Proforma increase of 2 
                                  bps on 30 June 2014 estimated 
                                  BCBS Leverage ratio 
------------------------------  ------------------------------- 
 Loss after tax on transaction   c.GBP(0.4)bn to be reported 
                                  in Q3 2014; plus c.GBP(0.1)bn 
                                  upon completion 
------------------------------  ------------------------------- 
 Tangible Net Asset Value        Proforma decrease of c.4 
  ("TNAV") per share              pence on 30 June 2014 
                                  reported TNAV per share(1) 
------------------------------  ------------------------------- 
 

On completion, approximately 2,400 Barclays employees and 262 branches will transfer to CaixaBank. Completion is subject to, amongst other things, regulatory approvals and is expected to occur at or shortly after the year end.

Sale of UAE Retail Banking business to Abu Dhabi Islamic Bank

On 31 August 2014, Barclays completed the sale of its UAE Retail Banking business to Abu Dhabi Islamic Bank at an estimated pre-tax gain of GBP119m.

1. TNAV impact of c.GBP(0.7)bn differs from loss after tax of c.GBP(0.5)bn as c.GBP0.2bn of profit after tax relates to the recycling of currency translation and hedge accounting amounts from equity to income with no benefit to TNAV.

Barclays' Investment Bank and Barclaycard operations are not part of the disposal of the Spanish Businesses, while the UAE transaction is confined to a portfolio of mortgages, unsecured credit and deposits. We remain committed to our retained businesses in these territories.

Antony Jenkins, Barclays Group Chief Executive, said: "I am pleased to be announcing further progress on Barclays Non-Core asset reductions through the transactions announced today. We remain on track to rebalance Barclays as part of our strategy to deliver sustainable returns for our shareholders.

I want to take this opportunity to thank our colleagues in the Spanish Retail Banking, Corporate Banking and Wealth and Investment Management businesses, as well as our Retail Banking colleagues in the UAE, for their hard work and professionalism over many years."

- Ends -

For further information, please contact:

Barclays

   Investor Relations                                                            Media Relations 
   Charlie Rozes                                                                  Giles Croot 
   [phone]                                                      [phone] 

About Barclays

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.

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates", "plans" or similar expressions that are predictive or indicative of future events identify forward-looking statements. These statements are based on the current expectations of management and are naturally subject to risks, uncertainties and changes in circumstances. Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors, many of which are outside the control of Barclays and its Directors, that could cause actual results, and management's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. As such, forward-looking statements are no guarantee of future performance.

There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory environment, future exchange and interest rates, changes in tax rates and future business combinations or dispositions.

Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this document. Barclays does not undertake any obligation (except as required by requirements of the UK Listing Authority or any other legal or regulatory requirement) to revise or update any forward-looking statement contained in this document, regardless of whether that statement is affected as a result of new information, future events or otherwise.

No statement in this document is intended as a profit forecast and no statement in this document should be interpreted to mean that the earnings per Share for the current or future years would necessarily match or exceed the historical published earnings per Share.

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