Barclays () announced this Tuesday, 28, the purchase of the American personal loan platform Best Egg for US$ 800 million, in a move that, according to UBS analysts, signals the British bank’s intention to “expand, not shrink, its operation in the United States”.
The bank said the acquisition will “increase the scale and improve capital efficiency” of its US retail subsidiary. The bank also said that the business should “generate attractive returns over time” and be accretive to the return on tangible equity and earnings per share in 2027.
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Best Egg, founded in 2013, has already originated more than US$40 billion in personal loans for more than 2 million customers and is expected to facilitate US$7 billion in new financing this year, maintaining around US$11 billion in its portfolio. Barclays said it will preserve Best Egg’s business model, which combines different financing structures and revenues with loan origination and administration.
According to UBS, the acquisition responds to recent debates about the role of Barclays’ American division, marked by “high capital requirements, reduced portfolio after the end of the contract with American Airlines and higher cost of capital”. For analysts Jason Napier and Sanjena Dadawala, the deal reinforces Barclays’ capabilities in personal credit alongside the 20 card partners that are already part of its base.
Completion of the transaction is expected in the second quarter of 2026, subject to regulatory approvals.
*With information from Dow Jones Newswires
