Under the terms of the deal, Barclays will acquire a savings book of some £5.5 billion, and a mortgage book with outstanding balances of some £8.8 billion.

On completion, the 268 employees that support Standard Life’s UK mortgage and savings business will transfer to Barclays.

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.’

Barclays reported a decrease in pre-tax profits of 14 per cent in 2008 to £6.1 billion.