Swedbank has announced its acquisition of Barclays’ stake in Nordic card issuer Entercard for $275 million.
Entercard stands as a prominent player in the credit market across the Nordics, offering a range of card products and consumer loans in Sweden, Norway, Denmark, and Finland.
Tomas Hedberg, Deputy CEO of Swedbank, stated, “Today marks the formation of the largest card business in the Nordics and Baltics. This acquisition allows us to further invest in and enhance our operations, providing greater opportunities to improve our customer offerings.”
Since 2005, Swedbank and Barclays have held a joint ownership of Entercard, which currently boasts SEK 36 billion in assets, approximately 450 employees, and a customer base of 1.5 million. The company will retain its brand identity following the acquisition.
Jan Haglund, CEO of Entercard, expressed enthusiasm about the transition, noting, “For two decades, Entercard has experienced significant growth. Joining forces with Swedbank, the leading financial institution in Sweden and the Baltics, opens new avenues for enhancing our operations.”
The acquisition price reflects 50% of Entercard’s equity at the time of the transaction. This move is part of Barclays’ broader strategy to adopt a capital-light approach, akin to its recent divestiture of its payments business to Brookfield Asset Management.
Following the transaction, Barclays anticipates a four basis point increase in its Common Equity Tier 1 (CET1) capital ratio. Conversely, Swedbank expects a decrease of approximately 30 basis points in its CET1 ratio, aligning with its 15/27 business plan that focuses on digital transformation within the Nordics and Baltics.