Barclays Expands Reach with Acquisition of Tesco Retail Banking Business and Exclusive Partnership Deal

Barclays Expands Reach with Acquisition of Tesco Retail Banking Business and Exclusive Partnership Deal

(IN BRIEF) Barclays Bank UK PLC has announced its agreement to acquire Tesco’s retail banking business, marking a significant strategic move to expand its offerings and distribution channels in the UK. This acquisition, along with an exclusive long-term partnership to offer Tesco branded credit cards, personal loans, and deposits, is poised to enhance Barclays’ presence in the consumer banking sector. Subject to regulatory approval, the deal is expected to finalize in the latter half of 2024, welcoming approximately 2,800 Tesco colleagues to Barclays. Group Chief Executive C.S. Venkatakrishnan highlights the strategic importance of this partnership in leveraging Barclays’ expertise to further enhance the Tesco Clubcard loyalty scheme and reinforce the bank’s commitment to investing in its UK consumer business.

(PRESS RELEASE) LONDON, 10-Feb-2023 — /EuropaWire/ — We have announced that Barclays Bank UK PLC has entered into an agreement to acquire the retail banking business of Tesco and enter into an exclusive long-term partnership to offer Tesco branded credit cards, personal loans and deposits.

Tesco’s retail banking customer base is broadly similar to Barclays UK’s existing customers and will complement our current business, as well as build on our existing UK strategic partnerships with other leading retail, consumer electronics and loyalty programme brands.

The acquisition and partnership are subject to regulatory approval and expected to complete in the second half of 2024. Once completed, we will welcome approximately 2,800 Tesco colleagues to Barclays.

C.S. Venkatakrishnan, Group Chief Executive of Barclays, commented: “This strategic relationship with the UK’s largest retailer will help create new distribution channels for our unsecured lending and deposit businesses. We are able to bring our expertise in partnership cards developed over decades in the US to enhance further the highly successful Tesco Clubcard loyalty scheme.

“This partnership with Tesco is a further demonstration of the investment we continue to make in our UK consumer business. We are looking forward to working closely with the team at Tesco over the coming months to enable a smooth transition and, subject to completion of the transaction, we look forward to welcoming Tesco Bank colleagues and customers to Barclays.”

Ken Murphy, Group Chief Executive of Tesco, commented:
“Tesco Bank is a strong business that has helped millions of loyal customers to manage their money for more than 25 years. As we look to the future, our aim is to be the best provider of financial services in the UK, with this strategic transaction and partnership with Barclays unlocking greater value for customers and for our business. By working with one of the UK’s leading banks, we can bring customers new and innovative propositions, which will continue to benefit from Tesco Clubcard’s unique insight and digital capabilities. I’m hugely grateful to Tesco Bank colleagues for their dedication and excellent service to our customers, and I’m confident that this new partnership approach will build on that success.”

1. Adjusted operating profit is based on management accounts and reflects an estimated allocation of income and expenses between the acquired business and activities retained by Tesco Bank. It includes the estimated impact of transitional service arrangements but excludes the full impact of payments to be made under the strategic partnership agreement.
2. The exact consideration payable will depend on movements in the tangible net assets and expected credit loss allowance up to completion of the transaction.
3. Barclays’ CET1 ratio was 14.0% as at 30 September 2023.
4. Under the terms of the strategic partnership with Tesco for Barclays UK to market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand, Barclays UK expects to pay Tesco royalty, new account and Clubcard participation fees of approximately £50 million per annum in total.

About Barclays
Barclays is a British universal bank. We are diversified by business, by different types of customer and client, and geography. Our businesses include consumer banking and payments operations around the world, as well as a top-tier, full service, global corporate and investment bank, all of which are supported by our service company which provides technology, operations and functional services across the Group.

For further information about Barclays, please visit our website

Forward-looking statements
This announcement contains forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Barclays Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements.

These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. These statements are based on the current beliefs and expectations of Barclays’ management and are subject to significant risks and uncertainties. Actual outcomes may differ materially from those expressed in the forward-looking statements. Factors that could impact the Barclays Group’s future financial condition and performance are identified in the Barclays PLC’s filings with the US Securities Exchange Commission (the “SEC”) (including, without limitation, Barclays PLC’s Annual Report on Form 20-F for the fiscal year ended 31 December 2022, as amended), which are available on the SEC’s website at Subject to Barclays’ obligations under the applicable laws and regulations of any relevant jurisdiction (including, without limitation, the UK and the US), in relation to disclosure and ongoing information, Barclays undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contacts:

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SOURCE: Barclays


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