Barclays share price: Bank agrees to sell Egyptian business

on Oct 5, 2016
Updated: Oct 21, 2019
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Barclays (LON:BARC) has inked a deal to offload its business in Egypt, the blue-chip lender has said. The disposal is part of the group’s strategy to shed non-core assets as it looks to focus on its UK and US business.

Barclays’ share price gained 0.62 percent in yesterday’s session to close at 169.25p. The group’s shares, however, underperformed the broader London market, with the benchmark FTSE 100 index adding 90.82 points to close 1.30 percent higher at 7,074.34, benefitting from a weak pound which fuelled demand for London-listed exporters. The group’s shares have lost more than 30 percent of their value over the past year, and are down by some 22 percent in the year-to-date.
Barclays announced in a statement yesterday that it had agreed to sell its Retail and Corporate Banking business in Egypt to Morocco’s Attijariwafa Bank. While the FTSE 100 lender did not disclose the value of the deal, sources had previously told Reuters that they valued the business at around $400 million. The blue-chip lender expects the transaction to remove about £2 billion of the group’s risk-weighted assets.
Barclays’ chief executive Jes Staley, who has been trying to turn the company into a transatlantic bank, said that he was ‘pleased to announce a further reduction’ in the group’s non-core business.
“Today’s announcement demonstrates our continued focus on improving the Group’s returns and our ability to execute our strategy quickly,” he pointed out.
The Egyptian business disposal comes after the FTSE 100 bank recently wrapped up the sale of its Italian retail banking operations to Mediobanca for a loss of £258 million. Further deals in the lender’s pipeline include selling the bank’s Asian wealth business and shedding more of its 50-percent stake in Barclays Africa.
As of 07:57 BST, Wednesday, 05 October, Barclays share price is 172.03p.

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