BAWAG acquires German Barclays retail banking business

The BAWAG Group buys the German retail business of British major bank Barclays,With the acquisition, the bank wants to expand its presence in Austria, Germany, Switzerland and the Netherlands, according to a press release on Thursday. According to the press release, Barclays Consumer Bank Europe’s assets amounted to around EUR 4.7 billion at the end of March 2024 and consisted primarily of card and loan receivables.

BAWAG expects the acquisition to contribute more than EUR 100 million to earnings before taxes in 2027, by which time the transaction will be fully integrated. The acquisition is subject to customary conditions, including regulatory approvals, and is expected to be completed in the fourth quarter of 2024 or the first quarter of 2025.

“This acquisition is a very good strategic fit for us in terms of product offering, market presence, customer base and the workforce in Hamburg, which brings strong expertise in the credit card business in particular,” said BAWAG CEO Anas Abuzaakouk, according to a press release.

The Hamburg-based division of the major British bank has around 700 employees, has been active in Germany since 1991 and has more than 2 million customers.