STANDARD Life has today confirmed that it has agreed to sell its banking arm to Barclays.
The £226 million deal will see all 268 Standard Life Bank staff transfer over to Barclays.
Barclays will acquire £8.8 billion of mortgages and £5.5bn of customer deposits from the Edinburgh firm.
Standard Life had previously limited the extent
of its lending activity during the economic downturn and said it no longer sees growth in lending activity as being "consistent with the long-term financial objectives" of the group.
Sir Sandy Crombie, chief executive of Standard Life, said: "Since its launch in 1998 Standard Life Bank has grown steadily, but we no longer believe that increasing the lending activity of the bank is consistent with our long-term financial objectives.
"The transaction we have agreed with Barclays, along with the strategic agreement we have also announced today, supports our plan for growth as an asset managing business and will result in significant potential for future value creation for both parties.
"Barclays is an attractive partner for Standard Life, and also provides continuing security for the existing depositors and bondholders of Standard Life Bank.
"We look forward to working with Barclays to shape this strategic agreement and explore new market opportunities."
Frits Seegers, chief executive of Barclays' global retail and commercial banking, said: "The acquisition of Standard Life Bank is a good fit with Barclays existing UK retail banking business.
"This transaction brings to Barclays high-quality savings and mortgage books, and an attractive customer base.
"We also look forward to working together with Standard Life in the long-term savings and investments sector.
"We believe that we will be able to drive significant value for customers and shareholders - both through this acquisition and through the strategic initiative."
