Barclays Bank has agreed to offload its UK trust operations to ZEDRA, a provider of independent trust, fiduciary, corporate and fund services, for undisclosed sum.
Barclays said that, while the UK trust business is ‘attractive’ and has ‘strong growth potential’, it is no longer considered central to the bank's strategy. The business was moved into the Barclays Non-Core division of assets to be sold off.
Upon completion of the deal, clients of Barclays UK Trust business will become clients of ZEDRA.
Commenting on the deal, Barclays Non-Core head Harry Harrison said: “The sale of the UK Trust business represents further progress in reducing the portfolio of Barclays Non-Core. In 2016 alone we have agreed the sale of Barclays Bank Egypt, our Asian Wealth and Southern Europe cards businesses, completed the sale of our Portuguese retail bank and entered exclusive discussions for the potential sale of our French retail network."
Akshaya Bhargava, CEO, Barclays Wealth, Entrepreneurs and Business Banking said: “We know from experience that in ZEDRA we have found a buyer that satisfies our core criteria of being able to maintain exceptional service for our clients, is able to integrate and enhance the careers of our colleagues and who demonstrated a commitment to taking this business forward.
“Our priority is supporting all our impacted colleagues and clients throughout this transition. I want to take this opportunity to thank our colleagues in the business we are selling for their hard work and professionalism, which has built strong client relationships over many years and has made this business so attractive to ZEDRA.”
ZEDRA CEO Niels Nielsen said: “This is an important strategic acquisition for us and we welcome the staff and clients of Barclays UK Trust business to the ZEDRA Group. The move adds to our UK capabilities and other services we already provide. This development marks another step in our growth plan offering clients a balanced and global geographic reach.”
The transaction, which is subject to regulatory approval, is expected to have a minimal impact on Barclays’ reported financials.