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 going forward and therefore became part of Barclays Non-Core in March 2016.

The business comprises approximately £1.0bn of assets. It is being sold at a small premium to gross receivables and its sale will also result in a reduction in Non-Core costs. It is estimated that the transaction will result in a decrease in Risk Weighted Assets of approximately £0.9bn. Customers and employees will also transfer to Bancopopular-e. Completion, which is subject to regulatory approvals, is expected to occur by the end of the year.

The transaction has no impact on Barclays’ existing corporate and investment banking businesses in Spain and Portugal, which continue to be important elements within the Group’s franchise.

Jes Staley, Group Chief Executive, Barclays, said:

“I am delighted by the speed with which we are continuing to reduce our Non-Core exposure and costs. Our credit card operation in Spain and Portugal is a very good business with a highly talented and dedicated workforce but no longer fits with our strategic ambitions. I am sure it will continue to thrive as part of the Bancopopular-e business.

“Agreeing the sale of this business is further tangible progress towards our target of managing down Risk Weighted Assets in Barclays Non-Core to around £20bn in 2017.”