Barclays has reached an agreement to acquire the US personal loan platform Best Egg for 800 million (approximately 687 million euros), an operation carried out through its consumer banking subsidiary in the US, Barclays Bank Delaware (USCB)The entity thus strengthens its capacity to originate unsecured credit and its presence in the North American market.
The British bank says the transaction will expand its scale in consumer finance and diversify its revenue streams into fees for services and managementsupported by the asset securitization model. Closing is expected on 2026 second quarter, subject to regulatory approvals and the completion of the previously announced sale of the American Airlines credit card accounts receivable.
What the operation includes
Best Egg, founded in 2013, has built a digital franchise specializing in consumer loans. Since its launch, it has facilitated 40.000 over million in credits to more than two million customers, and currently manages around 11.000 million in personal loans. The company expects to originate more than $ 7.000 billion in 2025.
For Barclays, the addition of Best Egg complements its established card business in the United States and brings digital and risk management capabilities in a high-demand segment. The entity emphasizes that the US consumer finance market es profound and sophisticated, which offers significant growth potential.
In terms of capital, the purchase will consume around 16 CET1 basic pointsDespite this, Barclays is maintaining its shareholder remuneration roadmap with the aim of distributing at least 10.000 billion pounds between 2024 and 2026, with no changes to their announced goals.
The entity expects the transaction to increase the return on tangible equity (RoTE) from USCB starting in 2027 and contribute to achieving a goal close to 15% after 2026Furthermore, the group anticipates a positive contribution to earnings per share once the synergies are integrated.
Barclays plans to continue with the model of originate and distribute: will retain in its balance sheet a small part of the new loan flow generated by Best Egg and will channel the rest to institutional investors through asset-backed securities (ABS)receiving commissions for management and servicing.
Strategic fit for Europe and the group
For European investors, the deal fits with the group's strategy. diversify income beyond the interest margin, promoting light capital fee lines linked to the origination and management of securitized portfolios. This combination can reduce volatility of benefits profile throughout the cycle.
The appetite for consumer assets in the United States is also supported by a financial ecosystem where the demand for ABS is solid and diversifiedEven so, the entity emphasizes the importance of a strict risk discipline, following recent market events that have tested the credit quality and protection mechanisms of retail and subprime bond issuances.
Upcoming milestones and timeline
In the coming months, regulatory approval and operational integration work will be carried out, with the aim of preserving the origination rate and the platform's continuity. The closing milestone remains in the 2nd quarter of 2026, once the preceding conditions have been met.
Additionally, the closure is linked to the completion of the Sale of American Airlines' co-branded credit card receivablesThis transaction, already announced by Barclays, will facilitate the reallocation of resources and the optimization of risk-weighted assets Within the group.
The operation comes after a period of operational improvement in the group, which recently announced a £500 million share buyback and updated profitability targets, supported by revenue growth and progress in cost efficiency despite additional provisions.
With the acquisition of Best Egg, Barclays takes a significant step towards gain scale in consumer lending in the USLeveraging securitization to convert origination into fee income and strengthening its franchise from Europe. The price, the controlled impact on capitalThe closing schedule and return targets outline the main features of a strategy that seeks profitable growth and diversification of the group's revenue mix.