Barclays said in a statement that it would offload the 89 branches to Mediobanca division CheBanca! and expected to make a loss after tax of about €282 million ($300 million) . The deal is expected to be finalized in the second quarter of next year.
“This transaction is further evidence of the re-shaping of Barclays group to focus on our core businesses,” said chief executive Jes Staley.
“We continue to make progress in the reduction of Barclays non-core as we target risk weighted assets of around €28 billion at the end of 2017.”
Barclays added that it would continue to operate investment banking and corporate banking in Italy.