7th Sep 2015 09:52
LONDON (Alliance News) - Barclays PLC on Monday said it has sold its UK secured lending business to a group led by Goldman Sachs, another move in the lender's plans to focus on more profitable parts of the business and cut risk-weighted assets.
In a statement, the FTSE 100 bank said the sale of the secured lending portfolio has cut risk-weighted assets by a further GBP1.2 billion, and will have a "positive" effect on its common equity tier one ratio - a key measure of financial strength for banks.
Chairman John McFarlane said the sale is a sign of further progress in divesting assets from Barclays' non-core division.
The sale of UK Secured Lending is further evidence of our ability to reduce these legacy assets, as we target a risk weighted assets figure of around GBP20 billion in 2017," McFarlane said in a statement.
The buying group also includes Elderbridge, which is part of the Target Group, and private equity fund manager Pollen Street Capital.
Shares in Barclays were up 0.8% at 252.90 pence on Monday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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