BAWAG Group today announces the signing of a transaction to acquire Hamburg-
based Barclays Consumer Bank Europe from Barclays Bank Ireland PLC.
The acquisition will expand BAWAG Group's footprint in the DACH/NL region and
position it for future growth in one of the bank's core markets. As of 31 March
2024, Barclays Consumer Bank Europe had gross assets of EUR 4.7 billion primarily
comprising of card and loan receivables, of which approximately EUR 2 billion are
credit card receivables. BAWAG Group will work with the current leadership team
to continue growing its Retail business in Germany and Austria.
The acquisition creates long-term value to BAWAG's franchise, with an expected
profit before tax contribution of greater than EUR 100 million in 2027 once the
deal is fully integrated. The CET1 impact of the transaction is expected at -140
basis points. An overview of the acquisition is available on BAWAG Group's
website (www.bawaggroup.com/IR (http://www.bawaggroup.com/IR)).
The transaction, subject to customary closing conditions, including regulatory
approvals, is expected to occur in Q4 2024 / Q1 2025.
"We are excited about the acquisition of Barclays' German consumer lending
business and the many opportunities this presents for the Group. This is a great
strategic fit in terms of product offering, market presence, customer base, and
team members with deep credit card expertise based in Hamburg. This acquisition
provides us with a German consumer lending platform focused on credit cards,
personal loans, and savings products across a large and diverse customer base.
We look forward to welcoming the whole team and building on the strong
foundation that has been established. This is the second acquisition we have
signed in 2024, planting the seeds for continued profitable growth in the years
ahead", comments Anas Abuzaakouk, CEO of BAWAG Group.
"The purchase of our franchise by BAWAG Group reiterates the successful business
our teams have created in the German market over the past few decades. With
BAWAG Group's financial strength, digital know-how and ambitions behind us we
will further strengthen our foundation and capture opportunities ahead",
comments Tobias Grieß, CEO Barclays Consumer Bank Europe.
About Barclays Consumer Bank Europe
Barclays Consumer Bank Europe has been operating successfully in Germany for
more than 30 years and is one of the leading providers of credit cards with a
genuine credit function. The company's other business areas include consumer
loans, installment purchase financing via the online retailer Amazon and
overnight money accounts. Further information can be found at www.barclays.de
(http://www.barclays.de).
About BAWAG Group
BAWAG Group AG is a publicly listed holding company headquartered in Vienna,
Austria, serving 2.1 million retail, small business, corporate, real estate and
public sector customers across Austria, Germany, Switzerland, Netherlands,
Western Europe, and the United States. The Group operates under various brands
and across multiple channels offering comprehensive savings, payment, lending,
leasing, investment, building society, factoring and insurance products and
services. Our goal is to deliver simple, transparent, and affordable financial
products and services that our customers need.
BAWAG Group's Investor Relations website https://www.bawaggroup.com/ir contains
further information, including financial and other information for investors.
Forward looking statement
This release contains "forward-looking statements" regarding the financial
condition, results of operations, business plans and future performance of BAWAG
Group. Words such as "anticipates," "believes," "estimates," "expects,"
"forecasts," "intends," "plans," "projects," "may," "will," "should," "would,"
"could" and other similar expressions are intended to identify these forward-
looking statements. These forward-looking statements reflect management's
expectations as of the date hereof and are subject to risks and uncertainties
that may cause actual results to differ materially from those projected. These
risks and uncertainties include, but are not limited to, economic conditions,
the regulatory environment, loan concentrations, vendors, employees, technology,
competition, and interest rates. Readers are cautioned not to place undue
reliance on the forward-looking statements as actual results may differ
materially from the results predicted. Neither BAWAG Group nor any of its
affiliates, advisors or representatives shall have any liability whatsoever (in
negligence or otherwise) for any loss howsoever arising from any use of this
report or its content or otherwise arising in connection with this document.
This report does not constitute an offer or invitation to purchase or subscribe
for any securities and neither it nor any part of it shall form the basis of or
be relied upon in connection with any contract or commitment whatsoever. This
statement is included for the express purpose of invoking "safe harbor
provisions".
Contact:
Financial Community:
Jutta Wimmer (Head of Investor Relations)
Tel: +43 (0) 5 99 05-22474
IR Hotline: +43 (0) 5 99 05-34444
E-mail: investor.relations@bawaggroup.com
(mailto:investor.relations@bawaggroup.com)
Media:
Manfred Rapolter (Head of Corporate Affairs)
Tel: +43 (0) 5 99 05-31210
E-mail: communications@bawaggroup.com (mailto:communications@bawaggroup.com)
This text can also be downloaded from our website: https://www.bawaggroup.com
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