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Barclays sells Italian branches to Mediobanca's retail arm

An attendee pauses in front of a display at a Mediobanca meeting.
Giuseppe Aresu | Bloomberg via Getty Images
An attendee pauses in front of a display at a Mediobanca meeting.

Barclays has agreed a deal to sell its Italian bank branches to CheBanca!, the seven-year-old retail arm of Mediobanca, it said on Thursday confirming a Reuters report.

Mediobanca said in a statement that under the deal CheBanca! would acquire 89 branches from Barclays with 220,000 clients, residential mortgage loans worth 2.9 billion euros and 620 staff.

As part of the transaction, Barclays will pay CheBanca! 237 million euros ($250 million).

The deal has a 20-basis point negative impact on Mediobanca's capital which the bank said will be gradually recovered from earnings growth post-integration.