Barclays has signed an agreement to sell its Barclaycard consumer payments business in Spain and Portugal to Spanish online bank Bancopopular-e.
The move is part of the bank’s turnaround plan that includes disposing non-core parts of the business.
The business comprises approximately £1.0bn of assets. Barclays in a statement said that the deal would result in a reduction in its risk weighted assets of £900m.
Under the agreement, Barclaycard’s clients and employees will also transfer to Bancopopular-e, which is 51% owned by Varde Partners and 49% owned by Banco Popular Espanol.
Subject to regulatory approvals, the deal is expected to complete by the end of 2016.
Barclays group CEO Jes Staley said: "I am delighted by the speed with which we are continuing to reduce our Non-Core exposure and costs. Our credit card operation in Spain and Portugal is a very good business with a highly talented and dedicated workforce but no longer fits with our strategic ambitions. I am sure it will continue to thrive as part of the Bancopopular-e business.
"Agreeing the sale of this business is further tangible progress towards our target of managing down risk weighted assets in Barclays Non-Core to around £20bn in 2017."
The bank added that the transaction will have no impact on its existing corporate and investment banking businesses in Spain and Portugal.