Released: 26/10/2009
com:20091026:RnsZ3794B
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RNS Number : 3794B
Barclays PLC
26 October 2009
26 October 2009
Barclays PLC
Barclays to acquire Standard Life Bank
Barclays Bank PLC ("Barclays") has agreed to acquire Standard Life Bank Plc
("Standard Life Bank") from Standard Life Plc ("Standard Life") for a
consideration of £226m, payable in cash upon completion.
Under the terms of the transaction, Barclays will acquire a savings book of
approximately £5.5bn, as at 30 June 2009, and a mortgage book with outstanding
balances of approximately £8.8bn, as at 30 June 2009, with an average indexed
loan to value ratio of 48% at that date. On completion, approximately 270
Standard Life employees will transfer to Barclays.
Standard Life Bank reported IFRS underlying profit before tax of £26m for the
year ended 31 December 2008 and £15m for the half-year ended 30 June 2009.
Standard Life has confirmed to Barclays that Standard Life Bank has traded well
since 30 June 2009.
The price is based on an estimated tangible net book value of £293m and is
subject to adjustment based on changes to Standard Life Bank's tangible net book
value at completion. Completion is subject, amongst other things, to regulatory
approval and is expected to occur in the first quarter of 2010.
Separately, Barclays UK Retail Banking and Standard Life have also agreed heads
of terms to enter into a strategic agreement to explore joint opportunities in
the UK retail long-term savings and investments sector. The initial focus is
expected to be on the development of a multi-channel, simplified pension
product.
Frits Seegers, Chief Executive of Barclays Global Retail and Commercial Banking,
said: "The acquisition of Standard Life Bank is a good fit with Barclays
existing UK retail banking business. This transaction brings to Barclays
high-quality savings and mortgage books, and an attractive customer base. We
also look forward to working together with Standard Life in the long-term
savings and investments sector. We believe that we will be able to drive
significant value for customers and shareholders - both through this acquisition
and through the strategic initiative."
- Ends -
For further information, please contact:
Barclays
Investor Relations Media Relations
James Johnson Alistair Smith
+44 (0) 20 7116 7233 +44 (0) 20 7116 6132
Neil Temple Phillippa-Jane Vermoter
+44 (0) 20 7116 2928 +44 (0) 20 7116 7226
Standard Life
Investor Relations Media Relations
Gordon Aitken Barry Cameron
+44 (0) 131 245 6799 +44 (0) 131 245 6165
Nicola McGowan
+ 44(0) 131 245 4016
Notes to editors:
As at 30 June 2009, Barclays UK Retail Banking had approximately 13.0m savings
accounts and total customer deposit balances of £88.5bn.
As at 30 June 2009, Standard Life Bank had approximately 287,000 savings
accounts and total customer deposit balances of £5.5bn.
As at 30 June 2009, Barclays UK Retail Banking had approximately 824,000
mortgage accounts and a total mortgage book of £84.4bn. The average loan to
value ratio of the mortgage book on a current valuation basis was 44%, and the
average loan to value ratio of new mortgage lending was 46%. For the six months
to 30 June 2009, net new mortgage lending was £2.2bn in a market of £1.1bn.
Three-month arrears were 1.16%.
As at 30 June 2009, Standard Life Bank had approximately 78,000 mortgage
accounts and a total mortgage book of £8.8bn. The average indexed loan to value
of the mortgage book was 48%. Three-month arrears were 0.68%.
About Barclays
Barclays is a major global financial services provider engaged in retail and
commercial banking, credit cards, investment banking, wealth management and
investment management services, with an extensive international presence in
Europe, the USA, Africa and Asia. With over 300 years of history and expertise
in banking, Barclays operates in over 50 countries and employs over 145,000
people. Barclays moves, lends, invests and protects money for over 49 million
customers and clients worldwide. For further information about Barclays, please
visit our website www.barclays.com.
About Standard Life
Standard Life is a major asset managing company headquartered in Edinburgh and
operating across the globe. Established in 1825, Standard Life provides life
assurance and pensions, investment management, banking and healthcare insurance
products to over 6.5 million customers worldwide. The Group has around 10,000
employees across the UK, Canada, Ireland, Germany, Austria, India, USA, Hong
Kong and mainland China. At the end of June 2009 the Group had total assets
under administration of £156.5bn.
Forward-looking statements
This document contains certain 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 certain of the
Group's plans and its current goals and expectations relating to its future
financial condition and performance. Barclays cautions readers that no
forward-looking statement is a guarantee of future performance and that actual
results 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", "expect", "estimate", "intend", "plan", "goal",
"believe" or other words of similar meaning. Examples of forward-looking
statements include, among others, statements regarding the Group's future
financial position, income growth, assets, impairment charges, business
strategy, capital ratios, leverage, payment of dividends, projected levels of
growth in the banking and financial markets, projected costs, estimates of
capital expenditures, and plans and objectives for future operations and other
statements that are not historical fact. By their nature, forward-looking
statements involve risk and uncertainty because they relate to future events and
circumstances, including, but not limited to, UK domestic and global economic
and business conditions, the effects of continued volatility in credit markets,
market related risks such as changes in interest rates and exchange rates,
effects of changes in valuation of credit market exposures, changes in valuation
of issued notes, the policies and actions of governmental and regulatory
authorities, changes in legislation, the further development of standards and
interpretations under International Financial Reporting Standards (IFRS)
applicable to past, current and future periods, evolving practices with regard
to the interpretation and application of standards under IFRS, the integration
of the Lehman Brothers North American businesses into the Group's business and
the quantification of the benefits resulting from such acquisition, the proposed
disposal of Barclays Global Investors and the impact on the Group, the outcome
of pending and future litigation, the success of future acquisitions and other
strategic transactions and the impact of competition - a number of which factors
are beyond the Group's control. As a result, the Group's actual future results
may differ materially from the plans, goals, and expectations set forth in the
Group's forward-looking statements.
Any forward-looking statements made herein speak only as of the date they are
made. Except as required by the UK Financial Services Authority, the London
Stock Exchange or applicable law, Barclays expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking
statements contained in this announcement to reflect any change in Barclays
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based. The reader should, however,
consult any additional disclosures that Barclays has made or may make in
documents it has filed or may file with the SEC.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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