Barclays Drops Portugal Retail Banking Biz

Barclays is getting out of the retail banking business in Portugal.

Reports from Bloomberg indicate that Bankinter SA will be buying Barclays’ Portugal banking business for roughly $112 million (€100 million) as part of its international expansion.

“This is a new phase for the bank because we have primarily been a domestic bank,” Bankinter SA CEO Maria Dolores Dancausa said, according to Bloomberg. “This is the first step towards internationalization.”

As part of the sale, Barclays will give up its retail, private and business banking units in the country, according to a regulatory filing. According to Bloomberg, the purchase price “represents about 40 percent of the book value of the activities acquired.” In a separate but related deal, Bankinter and Mapfre SA are absorbing Barclays’ life insurance and pensions business.

This move by Barclays follows its decision last year to sheds its Spanish retail banking business — which is part of Barclays Chairman John McFarlane’s plan to focus on regions that are performing best.

According to Bloomberg, Barclays will post a loss on the sale of  $305 million (£200 million), which will be reflected in its third-quarter results. The sale is slated to be finalized in 2016’s first quarter.

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