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.
