Barclays Africa Group is to rebrand to Absa Group by 2020, subject to regulatory approval in all ten countries that it operates in.
This follows the successful sale of Barclays PLC’s stake in the bank’s Africa’s operations.
Barclays PLC has since December 2017, reduced its stake in the Africa Operations from 62 to 15 percent.
Addressing a telephone conference on March 1, 2018, CEO of Barclays Africa, Maria Ramos said the rebranding will strictly conform to prevailing regulations guiding its operations.
“The implementation of this decision necessitates that we take into account practical considerations and dynamics in each market so that it is as seamless as possible. The change will be rolled out in time, bearing in mind the mid-2020 rebranding deadline. This transaction will be undertaken with the utmost care,” she said.
Financial results for 2017
The Group reported a 4% increase in headline earnings in 2017 as impairments declined substantially from a high base in 2016.
Return on equity of 16.4% remains strong.
Headline earnings, a measure analysts use to gauge profitability, grew despite the continued slow economic expansion in some of the Group’s largest markets, including South Africa, where the Group generates approximately 80% of its income.
Barclays Africa Group continues to have solid balance sheet assets of R1.2 trillion and strong capital and liquidity levels – these are measures of the strength of buffers banks have in place to protect customer deposits.
According to the bank, its Africa Group’s separation from Barclays PLC is progressing well and the parties continue to work together to ensure a seamless separation.
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By: Pius Amihere Eduku/citibusinessnews.com/Ghana