Barclays PLCBCS is reportedly mulling the sale of a stake in the U.K. merchants' payment processing unitas the bank is seeking a partner to boost the business.

The business could be worth at least 2 billion ($2.5 billion), based on an EBITDA of about 300 million and similar deals, Reutersreported, citing statements from four people familiar with the matter.

For 2023, Barclaysexpects a loan loss rate of 50-60 bps in 2023and a return on tangible equity of above 10%. At amortized cost, loans and advances at the company stood at 401.4 billion, and deposits were 554.7 billion at the end of the second quarter of2023.

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The early-stage discussions of a potential divestment are part ofBarclays' review of its global payment activities spanning merchant acquiring and credit card services, the report noted.

The report added the financial behemoth is eyeing a partner with the strategic "know-how" to grow the business and raise capital.

The company has not decided how significant a stake it might divest.

"We don't comment on speculation. Our businesses continue to perform well and growing our global payments business is a priority for us," Barclays told Reuters.

BCS Price Action:Barclays shares closed Friday higher by 0.53% to $7.55.

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