Disposal of non-performing Italian mortgage portfolio

Barclays has agreed the sale of its non-performing Italian mortgage portfolio (the “Portfolio”) to entities¹ financed by funds and accounts managed by SPF Investment Management, L.P. (“SPF”) and Bayview Asset Management, LLC (“Bayview”).

Together with the other disposals announced earlier in the year, this transaction is another example of Barclays’ disciplined execution against the plan presented at our Investor Update in February 2024.

The sale of the majority of loans within the Portfolio has now completed, with the sale of the remainder expected to complete later in Q4 2024. The total net asset value of the Portfolio at completion of the sales is expected to be approximately €95 million. The transaction is expected to generate a small pre-tax loss of approximately €30 million, and release approximately €125 million of risk-weighted assets. As a result, the transaction is expected to be broadly neutral to Barclays’ CET1 ratio.

Notes:
    1. Knicks SPV S.r.l. and Aurora 2023 SPV S.r.l. are entities financed by funds and accounts managed by SPF and Bayview.

ENDS

For further information, please contact:

Investor Relations
Marina Shchukina
+44 (0) 7385 142 673

Media Relations
Tom Sullivan
+44 (0) 7796 706 678

About Barclays

Our vision is to be the UK-centred leader in global finance. We are a diversified bank with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading investment bank and a strong, specialist US consumer bank. Through these five divisions, we are working together for a better financial future for our customers, clients and communities.

Forward-looking statements

This announcement contains forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Barclays Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Forward-looking statements are based on the current beliefs and expectations of Barclays’ directors, officers and employees and are subject to significant risks and uncertainties. Actual outcomes may differ materially from those expressed in the forward-looking statements. In setting its targets and outlook for the period 2024-2026, Barclays has made certain assumptions about the macroeconomic environment, including, without limitations, inflation, interest rates, the different markets and competitive conditions in which Barclays operates, and its ability to grow certain businesses and achieve costs savings and other structural actions. Factors that could impact the Barclays’ future financial condition and performance are identified in the Barclays PLC’s filings with the US Securities and Exchange Commission (“SEC”) (including, without limitation, Barclays PLC’s Annual Report on Form 20-F for the financial year ended 31 December 2023, and Interim Results Announcement for the six months ended 30 June 2024 filed on Form 6-K, which are available on the SEC’s website at www.sec.gov). Subject to Barclays’ obligations under the applicable laws and regulations of any relevant jurisdiction (including, without limitation, the UK and the US), in relation to disclosure and ongoing information, Barclays undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.