LONDON, Oct 28 (Reuters) - Barclays ( BCS ) will buy U.S.

personal loan originator Best Egg for $800 million, the British

bank said on Tuesday, as it tries to add scale in its personal

banking business in the United States.

The deal shows British lenders' continued appetite for

acquisitions after a run of strong results, following on from

HSBC's ( HSBC ) agreement to buy out Hong Kong's Hang Seng,

NatWest's ( NWG ) acquisition of the banking arm of retailer

Sainsbury's and Nationwide's takeover of rival Virgin Money.

Best Egg originates consumer loans via an online platform,

facilitating over $40 billion of loans for two million customers

since its launch in 2013. The loans are funded through

structures including securitisation and are backed by

alternative asset managers, Barclays ( BCS ) said, adding it expected to

continue the model.

"The deep and sophisticated U.S. consumer finance market

offers rich prospects for growth at Barclays ( BCS )," CEO C.S.

Venkatakrishnan said.

Barclays ( BCS ) said the deal will help it build scale in the U.S.

market, where its personal banking presence lags much bigger

incumbent domestic banks.

Barclays ( BCS ) said the deal will diversify its income by adding more

capital-light servicing fees as opposed to interest income and

interchange fees. Best Egg currently services about $11 billion

in personal loans, it added.

Barclays ( BCS ) last week announced a surprise 500 million pound share

buyback and upgraded a key profitability target for the year, as

its income and cost-cutting progress outweighed fresh provisions

and underperformance in its investment bank.

Barclays ( BCS ) said it expects the deal to close in the second

quarter of 2026, after the completion of the previously

announced sale of its American Airlines co-branded credit card

receivables.