New Delhi, India, 29 August – Barclays has decided to sell its 50% stake in Entercard Group to Swedbank for $273 million, marking yet another step in the UK bank’s global efforts to streamline operations. More specifically, this transaction represents Barclays’ ongoing strategy to simplify its international presence. As a result, Swedbank will purchase Barclays’ 50% ownership in Entercard, a Nordic consumer credit provider. The deal values Entercard at 5.2 billion Swedish crowns based on equity figures from March 2025. Moreover, Swedbank will pay the full amount in cash, thus making Entercard a wholly owned subsidiary.
Entercard currently serves 1.5 million customers throughout Sweden, Norway, Denmark, and Finland. In addition, it provides credit cards and consumer loans through partnerships across the region. The company employs around 450 staff members and will continue to operate under its existing brand. Barclays announced that this sale will free up £900 million in risk-weighted assets. Furthermore, it will boost its common equity Tier 1 ratio by four basis points. The transaction is expected to close by the end of 2025, pending regulatory approvals.
Swedbank’s Deputy CEO, Tomas Hedberg, called the acquisition a strategic milestone. “We are creating the largest card business in the Nordics and Baltics,” he said. He also stated that the deal will enhance Swedbank’s customer offerings and regional reach. Meanwhile, Entercard’s CEO Jan Haglund welcomed the change, emphasizing the new business opportunities this transition will create. He noted Entercard’s 20 years of growth and its alignment with Swedbank’s long-term vision.
Barclays has steadily exited non-core businesses to focus more on its UK and US banking segments. For example, it sold most of its UK payments business to Brookfield Asset Management in April. CEO C.S. Venkatakrishnan has emphasized strengthening the balance sheet and simplifying the portfolio. Consequently, this Entercard sale aligns with Barclays’ broader strategy of reducing overseas retail banking exposure. Analysts note this move reflects a shift toward scalable, high-margin operations. Additionally, Barclays has cut back its presence in Asia and continental Europe over recent years.
Swedbank expects the acquisition to affect its capital structure. Specifically, the bank anticipates a 30 basis point drop in its CET1 ratio after completion. However, management believes the long-term gains outweigh this short-term impact. This deal also fits within Swedbank’s 15/27 business plan, which prioritizes regional consolidation and digital transformation. Therefore, integrating Entercard should accelerate Swedbank’s fintech growth and consumer lending capabilities.
Swedbank has been expanding across the Nordics and Baltics, currently serving more than 7 million retail customers and 550,000 corporate clients in Sweden, Estonia, Latvia, and Lithuania. Additionally, it maintains operations in the US and China. Industry experts view this acquisition as a bold step in a highly competitive credit market. Nordic banks face challenges from digital disruptors and changing consumer preferences. Hence, full ownership of Entercard will help Swedbank adapt quickly to market shifts.
This deal also signals strong confidence in the regional consumer finance sector. Despite economic challenges, credit demand remains solid. Entercard’s well-established brand and customer base provide Swedbank with a strong platform for growth. Meanwhile, Barclays continues to focus on core banking and investment services. The bank has reported stable earnings and improved capital ratios recently. Therefore, exiting Entercard will likely increase Barclays’ financial flexibility.
Both banks confirmed Entercard will keep its leadership and operational independence. As a result, customers should not expect immediate changes in service or branding. Integration will primarily focus on backend systems and strategic alignment. The sale awaits approval from regulators in Sweden and the UK. Swedbank expects a smooth regulatory process, citing its longstanding partnership with Barclays.
As the deal moves forward, observers will watch how it impacts competition and lending trends in the region. This acquisition could spark further consolidation in the Nordic credit market. Barclays and Swedbank have co-owned Entercard since 2005. Their collaboration helped build one of Scandinavia’s top credit businesses. Now, with this sale, both banks enter a new phase in their strategic evolution.
Ultimately, this transaction reflects a wider trend of banks focusing on core strengths. As financial institutions face digital disruption and regulatory changes, strategic divestitures are becoming increasingly common. Thus, Barclays’ sale of Entercard to Swedbank represents more than a financial deal; it highlights changing priorities, market evolution, and the pursuit of lasting value.
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