Barclays share price: Group offloads €177m of Italian loans

on Feb 7, 2017
Updated: Oct 21, 2019
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Barclays (LON:BARC) has struck a deal to offload €177 million of Italian loans, the Financial Times has reported. The move comes as the blue-chip lender looks to trim its non-core assets in an effort to focus on its operations in the UK and the US.

Barclays’ share price has gained ground in London this morning, having added 0.51 percent to 228.55p as of 10:06 GMT. The advance is largely in line with gains in the broader London market, with the benchmark FTSE 100 index currently standing 0.61 percent higher at 7,215.97 points. The group’s shares have gained some 30 percent over the past year, and are up by more than two percent in the year-to-date.

The Financial Times reported this morning that private equity group AnaCap Financial Partners had struck a deal to acquire €177m of Italian loans from Barclays. The newspaper notes that the transaction, expected to complete in the second quarter of the year, will cut the group’s noncore risk weighted assets by £78 million, with Barclays aiming to reduce its noncore business, targeting risk weighted assets of about £20 billion, by the end of the current year.

The sale comes after the FTSE 100 lender offloaded its Italian retail business to CheBanca, a subsidiary of Mediobanca Group, last year for a loss of £258 million.
The news comes as the Barclays is currently undergoing a restructuring under chief executive Jes Staley who is looking to turn the group into a transatlantic bank.
The 20 analysts offering 12-month price targets for Barclays for the Financial Times have a median target of 230.00p on the stock, with a high estimate of 275.00p and a low estimate of 180.00p. As of February 4, the consensus forecast amongst 25 polled investment analysts covering the lender advises investors to hold their position in the company.
As of 10:41 GMT, Tuesday, 07 February, Barclays share price is 228.55p.

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