Under the deal, Bankinter will acquire retail banking, wealth and investment management businesses and part of corporate banking business from Barclays that are worth around €100m.
These businesses provide services to small and medium-sized enterprises in the country.
Barclays will also sell its Portuguese insurance business to Bankinter’s subsidiary Bankinter Vida, for around €75m. Bankinter Vida runs an insurance joint-venture with Mapfre.
Once the deal concludes, around 1,000 Barclays banking and insurance employees and 84 branches are expected to be transferred to Bankinter and Bankinter Vida, reported Reuters.
According to Barclays, the deal is expected to result in a pro forma decrease in risk weighted assets of around £1.7bn on completion and a loss after tax of about £200m.
In Portugal, Barclays will continue to operate investment banking and multinational corporate banking, Barclaycard.
Barclays chairman John McFarlane said: "I want to take this opportunity to thank our Portuguese colleagues in the businesses we are selling for their hard work and professionalism which has built strong customer and client relationships over many years and has made these businesses so attractive to Bankinter and Bankinter Vida.
"We will continue to operate our Barclaycard, investment banking businesses and service our multinational corporate clients in Portugal."
Subject to regulatory approvals, the deal is expected to complete in the first quarter of 2016.
Image: Barclays Bank HQ, Docklands, London. Photo: courtesy of Secretlondon / Wikipedia.
