Barclays Plc will complete its exit from retail banking in continental Europe after agreeing to sell its French retail business to AnaCap Financial Partners LLP.

Employees of the French unit will transfer to AnaCap's portfolio of companies after the sale, which was finalized after Barclays consulted with employee representatives. The sale is expected to reduce Barclays' risk-weighted assets by about £500 million and its annualized noncore costs by £130 million.

The sale covers 74 retail branches, a life insurance business, wealth and investment management and brokerage operations. It does not include Barclays' corporate and investment banking businesses, which the bank will continue to operate in France.

The sale, subject to regulatory approvals, is expected to be completed by the second quarter of 2017.

AnaCap's other European banking investments include U.K.-based Aldermore Group Plc; Malta's Mediterranean Bank Plc; and Poland's Nest Bank SA.