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Barclays drives through sale of risk analytics and index unit to Bloomberg

Published 24/08/2016

The move is part of the lender's strategy of focusing on its core UK and US banking operations
The move is part of the lender's strategy of focusing on its core UK and US banking operations

Barclays has continued to trim away its non-core business by driving through the sale of its risk analytics and index unit to Bloomberg for around £615 million.

The banking giant said it would make a pre-tax gain of about £535 million once the sale of Barclays Risk Analytics and Index Solutions (BRAIS) was complete.

The move is part of the lender's strategy of focusing on its core UK and US banking operations by closing its non-core businesses.

The overhaul has seen the lender sell its Barclaycard credit card operations in Spain and Portugal to Bancopopular-e and sell down its 62.3% stake in Barclays Africa.

Jes Staley, chief executive of Barclays, said the deal with Bloomberg would bring the bank closer to achieving its strategy of running down non-core.

"As I said at our interim results, the second half of this year will include even more progress in non-core rundown as we anticipate closing the sale of our cards business in Iberia, the sale of our wealth business in Asia, and the sale of our Italian retail network." he said.

"These transactions, including BRAIS today, will bring down annualised costs in non-core by £250 million and reduce RWAs by a further £3 billion."

The unit sold to Bloomberg includes Barclays' fixed income benchmark indices, its aggregate family of indices and BRAIS strategy of indices.

The bank said the benchmark indices would be rebranded to Bloomberg Barclays Indices for an initial period of five years.

It added that it will hold on to its quantitative investment strategy index business and the Barclays strategy indices, but the calculation and maintenance of its strategy indices will be outsourced to Bloomberg.

The deal also includes intellectual property linked to the POINT portfolio analytics tool, with Barclays continuing to operate POINT for a year and a half after the sale.

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