BAWAG Group: Expanding Footprint with Barclays Acquisition

BAWAG Group AG, a leading financial services provider, has successfully completed the acquisition of Barclays Consumer Bank Europe, further strengthening its position in the DACH/NL region. The acquisition, announced on February 3, 2025, is expected to significantly enhance BAWAG Group's market share and competitive position, as well as generate substantial synergies and cost savings.

The acquisition of Barclays Consumer Bank Europe, a successful provider of credit cards, consumer loans, and installment purchase financing, will allow BAWAG Group to expand its customer base and product offerings. The combined entity will operate under the Barclays brand during a transitional period, with rebranding expected to be unveiled in 2026. This strategic move is in line with BAWAG Group's long-term strategy of increasing its Retail & SME business share to 90% in the mid-term.



The acquisition is projected to add over €250 million in pre-tax profit by 2027, subject to regulatory approvals. This is expected to be achieved through a combination of operational synergies, cost savings, revenue synergies, and branding synergies. By integrating Barclays Consumer Bank Europe's operations, BAWAG Group can leverage its existing infrastructure and systems to streamline processes, reduce operational costs, and improve overall efficiency. Additionally, the combined entity can negotiate better terms with suppliers, reduce overhead costs, and optimize its workforce, leading to significant cost savings.

The acquisition is also expected to generate revenue synergies through cross-selling opportunities and expanded product offerings and services. By combining the two businesses, BAWAG Group can increase its customer base and market share in the DACH/NL region, ultimately achieving its mid-term target of a 90% share in the Retail & SME segment.

In conclusion, the acquisition of Barclays Consumer Bank Europe is a strategic move for BAWAG Group, aligning with its long-term goals of increasing market share and expanding its customer base. The combined entity is expected to generate significant synergies and cost savings, contributing to the overall financial benefits of the acquisition. As BAWAG Group continues to integrate Barclays Consumer Bank Europe's operations, investors can expect to see a stronger and more competitive financial services provider in the DACH/NL region.