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Barclays To Sell French Wealth, Retail Business

Arti Mehta

12 December 2016

 for an undisclosed sum.

The sale includes Barclays’ wealth and investment management network operations, 74 of its retail branches, a life insurance business and its brokerage operations. Current employees will join AnaCap.

The deal completes Barclays’ exit from retail banking in continental Europe. The group will continue to operate corporate and investment banking in France.

Upon completion, the transaction is expected to result in a reduction in risk weighted assets by about £500 million ($633 million), whilst annualised non-core costs will be reduced by £130 million.

“The business in France is an attractive one, with a strong customer base and proposition, but it is no longer central to our strategy,” said Jes Staley, chief executive of Barclays Group.

“This is another positive step in reducing our non-core unit, creating a more focused, simpler Barclays, and thereby releasing the strong performance of our core business,” he added.

The addressable market of Barclays’ retail banking and wealth business operations total some €3.5 trillion ($3.4 trillion) of assets, with an expected compound annual growth rate of 4 per cent through to 2020, AnaCap said in a separate statement.

“We look forward to working with the management team to create the leading wealth manager for the affluent sector in France,” said Nassim Cherchali, director of AnaCap.

AnaCap, headquartered in London, is a financial services private equity firm. Its banking investments include Aldermore in the UK, MeDirect in Belgium; Mediterranean Bank in Malta; Equa bank in the Czech Republic; and FM Bank in Poland – recently rebranded as Nest Bank.