Barclays has agreed to buy $3.8bn (£2.8bn) of credit card receivables from Synchrony Bank issued with The Gap after replacing the US lender as the retailer’s card partner.
The loans comprise US co-branded and private label credit card accounts. The deal follows Barclays’ agreement with Gap in April to issue credit cards to the retailer’s customers, replacing Synchrony after more than 20 years.
Barclays said the price for the portfolio would have been about $3.9bn based on June valuations. The exact size and cost will depend on movements before completion, expected in the second quarter of 2022.
The FTSE 100 bank estimated the acquisition would reduce its common equity tier 1 ratio by about 20 basis points.
