Barclays Sells Entercard Stake to Swedbank for $273M Amid Ongoing Strategy to Streamline Operations

Barclays is selling its stake in Entercard Group, a Nordic consumer credit joint venture, to partner Swedbank for $273 million in cash. The deal is expected to complete by year-end and will release £900 million of risk-weighted assets, adding four basis points to Barclays' common equity tier 1 ratio. Barclays is streamlining operations and exiting non-core markets, while Swedbank will assume full ownership and integrate Entercard into its operations. The acquisition cements Swedbank's position as the largest card issuer in the Nordics and Baltics and creates scope for customer offerings and digital initiatives under its "15/27" business plan.

UK-based Barclays has agreed to sell its stake in Entercard Group to its partner Swedbank for GBP 202 million in cash. The deal is expected to complete by the end of 2025 and will release approximately GBP 900 million of risk-weighted assets, increasing Barclays' common equity tier 1 (CET1) ratio by four basis points [1]. The transaction is part of Barclays' ongoing efforts to streamline operations and focus on core banking activities.

Entercard Group, a Nordic consumer credit joint venture, was founded in 2005 as a collaboration between Barclays and Swedbank. It focuses on scaling consumer lending across Scandinavia and issues credit cards and personal loans under several brands. Following the completion of the deal, Swedbank will hold full ownership of Entercard's 1.5 million customers and 450 employees. The company will continue to operate under its own name but will be fully integrated into Swedbank's operations [2].

For Barclays, the sale of its 50% stake in Entercard Group is a strategic move to reduce exposure to consumer lending and free up capital. The disposal finalizes its funding obligations, with Entercard having to repay approximately GBP 1.2 billion currently provided by Barclays Bank PLC after the transaction closes. The deal reflects a broader trend among global banks to shed non-core fintech investments in favor of core banking operations [3].

Swedbank, on the other hand, will assume full ownership and integrate Entercard into its operations. The acquisition will cement Swedbank's position as the largest card issuer in the Nordics and Baltics and create scope for customer offerings and digital initiatives under its "15/27" business plan. However, the deal will temporarily reduce Swedbank's CET1 ratio by approximately 30 basis points at closing [4].

The transaction highlights the evolving investment landscape in the fintech sector. As institutional investors prioritize capital efficiency and regulatory alignment, the sector is fragmenting into high-potential niches (AI, digital assets) and mature, low-margin segments (consumer credit). For those seeking entry, the key lies in identifying fintechs that balance innovation with profitability—a challenge that will define the next phase of the industry's evolution [5].

References:

[1] https://thepaypers.com/fintech/news/barclays-sells-its-stake-in-entercard-group-to-swedbank
[2] https://www.ainvest.com/news/strategic-portfolio-realignment-barclays-entercard-stake-sale-implications-fintech-exposure-2508/
[3] https://www.directorstalkinterviews.com/barclays-to-sell-entercard-stake-to-swedbank/4121213826