UK-based Barclays has agreed to sell its stake in Entercard Group to its partner Swedbank for GBP 202 million in cash.
The specified price reflects Entercard’s book value as of March 2025. In a statement issued on 28 August 2025, Barclays said that the sale is expected to free up approximately GBP 900 million of risk-weighted assets and increase its common equity Tier 1 ratio by four basis points. The bank anticipates completing the transaction by the end of 2025.
The deal with Entercard Group and Swedbank is part of Barclays’ clean-up plans, following the financial institution's recent agreement with Brookfield Asset Management to separate most of its UK merchant-acquiring unit into a standalone business. Additionally, the financial institution has spent the past years reducing non-core holdings, aiming to direct its attention towards wholesale banking, credit cards, and UK retail.
Further details on the transaction
Founded in 2005 as a joint venture between Barclays and Swedbank, Entercard focuses on scaling consumer lending across Scandinavia. The company issues credit cards and personal loans under several brands and offers co-branded cards with retailers across Sweden, Norway, Denmark, and Finland.
Following the completion of the deal, Swedbank is set to hold full ownership of Entercard’s 1.5 million customers and 450 employees. However, the company will continue to operate under its own name. According to Swedbank’s officials, the move seeks to support the expansion of Entercard across the Nordics and Baltics. Since its launch, the company has been on a consistent growth journey, with it becoming a full part of Swedbank. Now, with this initiative, the financial institution intends to create more business opportunities to further strengthen its operations.
When it comes to Barclays, the deal reduces exposure to consumer lending. As detailed by regulatory filings, the disposal finalises its funding obligations, with Entercard having to repay approximately GBP 1.2 billion currently provided by Barclays Bank PLC after the transaction closes. For Swedbank, the buyout advances its regional development strategy; however, it will reduce the institution’s CET1 ratio by approximately 30 basis points at closing. The bank stated that the purchase price equals half of Entercard’s equity at book value. As Barclays retreats, Swedbank is set to get a fully controlled card and consumer-finance platform in its home markets.
