Barclays to sell its Egypt business to Attijariwafa Bank

As part of its restructuring initiatives, Barclays PLC (BCS - Analyst Report) has agreed to sell its Retail and Corporate Banking business in Egypt to Attijariwafa Bank S.A., the biggest bank of Morocco in terms of revenue. The completion of the deal is subject to regulatory approvals and is anticipated to occur by the end of this year. Notably, the deal value was not disclosed.

The divestiture is expected to result in a benefit of 10 basis points in the bank’s Common Equity Tier 1 (CET1) ratio, as of Jun 30, 2016. Further, the deal is expected to reduce the bank’s risk weighted assets (RWAs) by approximately £2 billion ($2.55 billion).
The divestiture is in line with Barclays’ decision to focus on its U.K. and U.S. operations, while selling or minimizing its activities in Africa, continental Europe and Asia. Further, the restructuring is in view with the bank’s aim to simplify its structure and seek higher shareholder returns.