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Barclaycard business in Spain and Portugal sold amid Barclays turnaround plan

Published 28/04/2016

Barclays is turning its focus to Britain and the US
Barclays is turning its focus to Britain and the US

Barclays has sold its Barclaycard credit card operations in Spain and Portugal to Spanish online bank Bancopopular-e.

The move is part of chief executive Jes Staley's turnaround plan that includes selling off non-core parts of the business.

It is understood that the sale raised up to 600 million euro (£466 million) for Barclays and will save the bank £70 million a year in costs.

"While the Barclaycard business in Portugal and Spain is an attractive and strong business, it does not fit with Barclays' strategy to focus on scale businesses in core territories," the company said.

Barclays has already offloaded its retail and corporate banking divisions in Spain and Portugal as the lender turns its focus to Britain and the US.

Barclaycard in Spain and Portugal comprises around £1 billion in assets and Barclays said that the sale would "result in a decrease in its risk weighted assets of approximately £900 million".

The Iberian business has 800,000 customers, which equates to a 6% market share in Spain and 30% in Portugal.

Mr Staley said that it "no longer fits with our strategic ambitions".

Bancopopular-e is part-owned by Banco Popular Espanol.

Barclays will hold its AGM on Thursday, where Mr Staley's pay will come under the spotlight amid investor anger over high executive pay.

His annual pay and role-based allowance is worth £2.2 million, with annual bonuses worth a potential 80% of salary and long-term share awards worth a possible £1.44 million.

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