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Barclays (BCS) Inks Deal to Sell Retail Business in France
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In line with its efforts to simplify operations by vending off non-core businesses, Barclays PLC (BCS - Free Report) inked a deal to sell its French Retail Banking business to AnaCap Financial Partners, a European private equity firm. The sale is expected to be completed by the second quarter of 2017, subject to regulatory approvals.
According to the agreement, Barclays will sell its 74 retail branches, a life insurance business, wealth and investment management, and brokerage operations in France to AnaCap. Moreover, once the sale is completed, all its retail as well as wealth and investment management employees in France will be transferred to Anacap.
However, its corporate and investment banking businesses in France is not part of the sale and Barclays is expected to continue these operations.
Barclays mentioned that the transaction is likely to reduce its risk weighted assets by approximately £0.5 billion and annualized non-core costs by £130 million.
The company has been continuously striving to simplify operations and focus on its core businesses. With this aim, it has been divesting or closing less profitable operations that are not strategic to its business.
Notably, in November, it completed the sale of its Wealth and Investment Management business in Singapore and Hong Kong. A few days earlier, it sold its Barclaycard credit card operations in Spain and Portugal.
Barclays Chief Executive, Jes Staley said, “I am pleased that we have reached today’s agreement with AnaCap Financial Partners for the sale of our French retail and wealth and investment management operations. This is another positive step in reducing our Non-Core unit, creating a more focused, simpler Barclays, and thereby releasing the strong performance of our core business. The agreement to sell our French business completes Barclays’ exit from retail banking in continental Europe.”
We are of the opinion that the company’s constant divestiture of non-core operations worldwide will help it in improving operational efficiency and expense reduction. And these factors will eventually translate into better profitability.
Shares of the company gained 28.2% over the last three months, significantly outperforming the 12.5% growth of the Zacks categorized Foreign Banks industry.
Some other stocks worth considering in the same space include Societe Generale Group (SCGLY - Free Report) , Itaú Unibanco Holding S.A. (ITUB - Free Report) and Banco Santander (Brasil) S.A. (BSBR - Free Report) .
Societe Generale has witnessed an upward earnings estimate revision of 11.4% for the current year, over the past 60 days. Moreover, its share price is up 6% year to date. It sports a Zacks Rank #1.
Itaú Unibanco currently carries a Zacks Rank #2 (Buy). It has witnessed an upward earnings estimate revision of nearly 3% for the current year, over the past 60 days. Its share price is up 63.2% year to date.
Banco Santander also carries a Zacks Rank #2 and witnessed an upward earnings estimate revision of 75% for the current year, over the past 60 days. Also, the stock has gained over 100% year to date.
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Barclays (BCS) Inks Deal to Sell Retail Business in France
In line with its efforts to simplify operations by vending off non-core businesses, Barclays PLC (BCS - Free Report) inked a deal to sell its French Retail Banking business to AnaCap Financial Partners, a European private equity firm. The sale is expected to be completed by the second quarter of 2017, subject to regulatory approvals.
According to the agreement, Barclays will sell its 74 retail branches, a life insurance business, wealth and investment management, and brokerage operations in France to AnaCap. Moreover, once the sale is completed, all its retail as well as wealth and investment management employees in France will be transferred to Anacap.
However, its corporate and investment banking businesses in France is not part of the sale and Barclays is expected to continue these operations.
Barclays mentioned that the transaction is likely to reduce its risk weighted assets by approximately £0.5 billion and annualized non-core costs by £130 million.
The company has been continuously striving to simplify operations and focus on its core businesses. With this aim, it has been divesting or closing less profitable operations that are not strategic to its business.
Notably, in November, it completed the sale of its Wealth and Investment Management business in Singapore and Hong Kong. A few days earlier, it sold its Barclaycard credit card operations in Spain and Portugal.
Barclays Chief Executive, Jes Staley said, “I am pleased that we have reached today’s agreement with AnaCap Financial Partners for the sale of our French retail and wealth and investment management operations. This is another positive step in reducing our Non-Core unit, creating a more focused, simpler Barclays, and thereby releasing the strong performance of our core business. The agreement to sell our French business completes Barclays’ exit from retail banking in continental Europe.”
We are of the opinion that the company’s constant divestiture of non-core operations worldwide will help it in improving operational efficiency and expense reduction. And these factors will eventually translate into better profitability.
Shares of the company gained 28.2% over the last three months, significantly outperforming the 12.5% growth of the Zacks categorized Foreign Banks industry.
Currently, Barclays sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other stocks worth considering in the same space include Societe Generale Group (SCGLY - Free Report) , Itaú Unibanco Holding S.A. (ITUB - Free Report) and Banco Santander (Brasil) S.A. (BSBR - Free Report) .
Societe Generale has witnessed an upward earnings estimate revision of 11.4% for the current year, over the past 60 days. Moreover, its share price is up 6% year to date. It sports a Zacks Rank #1.
Itaú Unibanco currently carries a Zacks Rank #2 (Buy). It has witnessed an upward earnings estimate revision of nearly 3% for the current year, over the past 60 days. Its share price is up 63.2% year to date.
Banco Santander also carries a Zacks Rank #2 and witnessed an upward earnings estimate revision of 75% for the current year, over the past 60 days. Also, the stock has gained over 100% year to date.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>.