In a sign that the ongoing ppi claims mis-selling scandal is hurting the banks who were responsible for the massive fraud – Barclays has announced that it is to sell of its French retail banking division, in a move that the bank hopes will cut costs and streamline its banking operations.
AnaCap partners, who are a private equity firm has agreed with Barclays to take over seventy-four Barclays retail bases, in addition to AnaCap also taking over and controlling Barclays French wealth, investment management and brokerage businesses. However, the deal will not include Barclays investment banking and corporate banking operations in France.
Figures regarding to the amount of money paid by AnaCap to purchase Barclays operations were not disclosed to the media.
The BBC reported that the offloading of it’s French division comes in the wake of similar disinvestment’s by Barclays across the globe.
From the bbc.co.uk
Barclays has been trying to focus on its core UK and US banking operations by selling off less important subsidiaries.
It has previously sold its Barclaycard credit card operations in Spain and Portugal, its stake in Barclays Africa, and its wealth and investment management business in Singapore and Hong Kong.
Jes Staley, group chief executive at Barclays, said that the French business was “no longer central to our strategy”.
“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.
“The agreement to sell our French business completes Barclays’ exit from retail banking in continental Europe,” he added.