Bankinter acquires the retail business of Barclays in Portugal
This takeover constitutes a remarkable boost to the growth strategy of the bank and to the consolidation of Bankinter as a bank with a European vocation and reach.
Bankinter has agreed today the acquisition of the business of Barclays Retail & Wealth Portugal, which includes the retail banking, private banking and business banking activities managed by the British institution in Portugal.
Under the purchase agreement signed today, the Spanish institution will pay a multiple of 0.4 times the book value of the effectively transferred business, which is equivalent to an approximate price of 100 million euros.
In key figures, the retail business of Barclays in Portugal has a credit portfolio of 4.9 billion euros, 2,936 million euros in assets managed off the balance sheet, a network of 84 branches, 1,000 employees and 185,000 customers, of which 20,300 are companies.
The operation, which is subject to authorisation from the competent and regulatory bodies, excludes the purchase of the investment banking and cards business, as well as a small number of corporate customers of the institution, which will continue to be run by Barclays.
In parallel to the purchase of the aforementioned banking activity, Bankinter Seguros de Vida, a subsidiary company controlled in equal parts by Bankinter and Mapfre, has agreed with Barclays upon the acquisition of its Portuguese business of life insurance and pensions for an estimated amount of 75 million euros. Barclays Vida y Pensiones Sucursal en Portugal, which manages more than a billion euros of assets, obtained 150 million euros in premiums and 12.7 million euros of net profit in 2014.
The acquisition of Barclays Retail & Wealth Portugal represents the most significant corporate operation carried out by Bankinter in its international strategy in its 50-year history; and the second such operation that the bank has made outside of Spain since the takeover, in December 2012, of the banking infrastructure and licence of the Luxembourg subsidiary of the Dutch bank Van Lanschot. Similarly, it comprises a qualitative leap in the business strategy of the bank, which from now on, although it will continue to be focused on organic growth in Spain, will expand its physical presence, its balance sheet, its client base and its activity framework to another country of the European Union.
To that effect, Maria Dolores Dancausa, the CEO of Bankinter, pointed out that this operation, "constitutes a milestone in the recent history of the bank, and a very good opportunity for the institution and for its shareholders from which we will be able to obtain, in a short time, a quick return."
The top executive of Bankinter underlined that "the bank's business model, its management skills and its leadership in digital banking will be variables from which we will be able to generate the maximum value for these new customers. I am convinced - she added - that the solvency and good reputation achieved by Bankinter over all these years, which extends beyond the European domain, will be of great assistance to us in attracting more business and more customers in Portugal."
A message of confidence.
The Bankinter CEO also wanted to send a message of confidence both to the Portuguese market, and to the customers, employees and to the rest of the Barclays stakeholder groups in Portugal: "This is a country with many possibilities, that has been involved in difficult moments but which, with the effort of the entire Portuguese society, has started on the path to recovery, with a growth rate for the coming years in line with that of the rest of the eurozone. This is why we have decided to invest here. Barclays customers in Portugal will have access to innovative financial products and top-quality service.” With respect to employees, Dancausa states: “We are aware that we are in the presence of a great workforce, highly trained and with an enormous capability to adjust to and overcome new challenges. I will make all possible efforts to ensure the integration into the bank is carried out in the fastest and most natural way".
All in all, this takeover constitutes a remarkable boost to the growth strategy of the bank and to the consolidation of Bankinter as a bank with a European vocation and reach.
Bankinter, which celebrates its 50th birthday this year, is one of the most creditworthy, healthy and profitable financial institutions in Spain. At the close of the first half of 2015, the institution obtained a net profit of 197.3 million euros, 31.6% more than over the same period in 2014, originating mainly from recurring business with customers.
The bank closed the semester with a solid CET1 fully loaded capital ratio of 11.5% and a high return on capital, with 10.6% ROE, among the highest in Spanish banking. In the last stress tests to which the European Central Bank subjected the main Eurozone banks, Bankinter obtained the best grade among Spanish banks quoted on the stock market. In addition, it has the finest quality assets of the system, with a non-performing loans rate of 4.4%, almost three times less than the sector average, the result of a rigorous track record in risk management.
Similarly, Bankinter is a benchmark institution due to its technological development, service quality above that of the sector and clear commitment to the innovation and use of alternative service channels in its relationship with its customers. Bankinter has been a pioneer in Spain in starting remote banking systems supplementary to the traditional branch network, via telephone, the Internet or mobile phone, which has enabled it to offer diverse relationship and product marketing possibilities from a perfectly comprehensive multi-channel strategy. In this regard, a recent UBS survey situated Bankinter as the first bank in Spain and the fourth in the world in the best position to benefit from expansion of the mobile phone banking industry.
Bankinter is one of the few Spanish financial institutions that have increased their workforce in recent years. At the close of the first half of 2015, the number of the bank's personnel reached 4,276 employees, 3.31% higher than in June 2014, with an average age of 41 and with a 51% and 78% presence of women and university graduates, respectively. Bankinter is considered as one of the best companies to work for, according to the rankings created by Merco, Best Place to Work and Actualidad Económica.
For further information about Bankinter, please visit our website www.bankinter.com
Barclays is an international financial services provider engaged in personal, corporate and investment banking, credit cards and wealth management with an extensive presence in Europe, the Americas, Africa and Asia. Barclays’ purpose is to help people achieve their ambitions – in the right way.
With 325 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 130,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.
For further information about Barclays, please visit our website www.barclays.com.