Swedbank has signed an agreement to purchase Barclays’ stake in Entercard, leading to Entercard becoming a fully owned subsidiary of Swedbank.

The acquisition price is determined by an amount equivalent to 50% of Entercard’s equity at the time of the deal.

As of the first quarter of 2025, Entercard’s total equity was estimated at around Skr5.2bn ($543.4m).

Entercard, which serves the Nordic credit market, provides card products and consumer loans across Sweden, Norway, Denmark, and Finland.

Entercard CEO Jan Haglund said: “For 20 years, Entercard has been on a strong growth journey. Becoming a full part of Swedbank, the leading financial group in Sweden and the Baltics, creates new business opportunities to further strengthen our operations.”

Since 2005, Swedbank and Barclays have jointly owned Entercard, which currently employs about 450 staff and serves 1.5 million customers.

The company will maintain its brand identity following the acquisition.

Swedbank deputy CEO Tomas Hedberg said: “Today we are forming the largest card business in the Nordics and Baltics. Through this acquisition, Swedbank continues to invest in and develop our business. This creates even greater opportunities to strengthen our customer offering.”

The deal is pending approval from the appropriate regulatory bodies.

The transaction is anticipated to have a negative effect on Swedbank’s Common Equity Tier 1 capital ratio, projected to decrease by approximately 30 basis points upon the deal’s completion.

This move aligns with Swedbank’s 15/27 business strategy.