Barclays to sell Entercard JV stake to Swedbank.

Barclays is selling its stake in the Nordics-based credit market company Entercard to partner Swedbank. The joint venture has been co-owned by Barclays and Swedbank since 2005. The sale details will be based on an undisclosed amount.

Barclays (NYSE: BCS) is set to sell its 50% stake in Entercard Group AB to its partner, Swedbank AB (publ). The joint venture, established in 2005, has been co-owned by Barclays and Swedbank, with Entercard providing consumer credit services across Sweden, Norway, Denmark, and Finland. The sale is expected to close by the end of 2025, following regulatory and competition approvals [1].

The purchase price will be based on an amount corresponding to 50% of the unit's equity at the time of acquisition. Swedbank is expected to acquire the stake at book value, estimated to be SEK2.6 billion as of March 31, 2025. The consideration will be payable in cash upon completion of the transaction [2].

This sale is part of Barclays' broader capital-light strategy, aiming to optimize capital efficiency and strengthen its balance sheet. The transaction is expected to free up approximately £0.9 billion in risk-weighted assets (RWAs) and boost Barclays' Common Equity Tier 1 (CET1) ratio by 4 basis points [3]. For Swedbank, the acquisition aligns with its 15/27 business plan, prioritizing digital transformation and capital efficiency in the Nordic and Baltic card markets, but will temporarily reduce its CET1 ratio by 30 basis points [3].

The Entercard divestiture is a strategic move that reflects broader industry trends toward RWA optimization and shareholder returns. Barclays' recent performance, including a £1 billion share buyback program and strong Q2 2025 earnings, supports this strategic shift. The deal's timing, announced just months after Barclays' Q2 2025 earnings report, underscores the bank's commitment to capital efficiency initiatives [3].

The sale of Entercard's stake to Swedbank represents a significant step for Barclays in its ongoing efforts to streamline its portfolio and focus on core operations. For investors, this transaction offers a case study in how global banks are leveraging divestitures to balance growth, compliance, and profitability in an evolving financial landscape.

References:
[1] https://seekingalpha.com/news/4490173-barclays-to-sell-entercard-jv-stake-to-partner-swedbank
[2] https://www.directorstalkinterviews.com/barclays-to-sell-entercard-stake-to-swedbank/4121213826
[3] https://www.ainvest.com/news/barclays-strategic-divestiture-entercard-stake-capital-efficiency-play-long-term-implications-2508/