Barclays Africa Group has indicated that the bank has not concluded decision to list its Ghana operations on the Ghana Stock Exchange(GSE).<\/p>\n
The Barclays Africa Group is listed on the Johannesburg Stock Exchange. The bank which is undergoing a sell-down completed its first tranche sale of 12.2 percent in May 2016.<\/p>\n
Speaking to journalists across the continent from Johannesburg via a telephone conference, the Chief Executive of Barclays Group Africa, Maria Ramos explained that listing on the bourse will require a strategic plan that has not been concluded yet.<\/p>\n
\u201cWe haven\u2019t yet arrived at a decision point about any change in strategy and ownership for any of our operations on the African continent. For now our focus is to own our Africa group. For now that is it but it doesn\u2019t mean we are not going to change our mind in the future,\u201d she said.<\/p>\n
Earlier, a press statement by the Group also presented the first half performance of the bank on the continent.<\/p>\n
The Barclays Africa Group which is one of the largest financial service providers in Africa with operations in 12 countries, today reported a solid financial performance for the first half of the year, demonstrating continued resilience in a deteriorating economic environment in South Africa, its largest market.<\/p>\n
The announcement marked the first time that the company reported results following Barclays PLC\u2019s sell-down of its majority stake in the African business in a share sale that saw exceptionally strong interest for the stock.<\/p>\n
In the Performance highlights, the headline earnings increased by 7% to R7.8 billion while credit impairments declined 27% from a high base in the first half of 2016.<\/p>\n
The Revenue decreased 1% to R36 billion, while \u00a0\u00a0\u00a0Effective cost-containment helped achieve cost-to-income ratio of 55.6%. \u00a0\u00a0Return on equity rose to 16.8% from 16.1%. Also, \u00a0\u00a0\u00a0\u00a0the \u00a0\u00a0\u00a0\u00a0\u00a0Balance sheet at R1.1 trillion, with strong capital adequacy and liquidity reserve positions<\/p>\n
\u201cWe are presenting a set of results that demonstrate the real value of the 2013 acquisition of the Barclays businesses in Africa,\u201d said Maria Ramos, Chief Executive, Barclays Africa Group Limited. \u201cBoth geographically, as well as by customer segment, they are proving their worth in yielding a strong performance for the first half, even as our biggest market, South Africa, has suffered the impact of an economic downturn.\u201d<\/p>\n
Summary of results<\/strong><\/p>\n Barclays Africa Group\u2019s normalized headline earnings increased 7% to R7.8 billion, driven by strong earnings growth in the Rest of Africa, and positive earnings growth in South Africa, featuring strong growth in corporate banking. Impairments declined by 27% from a high base in the first half of 2016, contributing to the improvement in earnings.<\/p>\n Group revenue declined 1% to R36 billion, given a deteriorating economic environment in South Africa, which in turn caused pre-provision profit\u00a0to decline 6%.<\/p>\n The cost-to-income ratio increased to 55.6% despite a focus on cost containment and inflationary cost growth. The return on equity remained attractive and improved to 16.8% from 16.1%.<\/p>\n The group continues to have a sound financial position with balance sheet assets of R1.1 trillion and strong capital adequacy and liquidity reserve positions.<\/p>\n Successful separation from Barclays PLC will be an overarching priority for Barclays Africa over the next three years.<\/p>\n For the remainder of the year, Barclays Africa will place priority focus on its retail and business bank performance in South Africa and on driving opportunities in its businesses outside of South Africa. WIMI will continue to focus on retention of clients and assets, optimizing opportunities presented by the pickup in momentum in Retail and Banking South Africa and returning the business outside of South Africa to profitability.<\/p>\n Barclays Africa is also continuing its significant investment in technology to build a more efficient and lower-cost franchise.<\/p>\n \u201cOur results today are testament to the resilience of our business and the momentum we are creating,\u201d Ramos said. \u201cWe expect the economic environment to remain challenging but we believe the long-term opportunities remain attractive.\u201d South Africa is in a recession after gross domestic product shrank 0.7% on an annualised basis in the first quarter. Economic growth forecasts for the full year have once again been revised downwards.<\/p>\n Barclays PLC Sell-down<\/strong><\/p>\n Following the first sale tranche of 12.2% in May 2016, the next milestone was successfully navigated with the second book-build concluded in June \u2013 the biggest ever seen in the local market at R37.7 billion.\u00a0 The transaction achieved accounting deconsolidation for Barclays PLC.<\/p>\n \u201cIt represents a huge vote of confidence from investors in the group we are creating,\u201d said Ramos. \u201cIt has been a great success and removes any uncertainty about our future ownership.\u201d<\/p>\n Looking forward, Ramos said: \u201cThis is an exciting time for us and I have said that our ambition remains the same and undiminished. We are building a pan-African financial services business with the potential to unlock the real opportunities and competitive advantages we enjoy.\u00a0\u00a0<\/span><\/p>\n About Barclays Africa Group<\/strong><\/p>\n \u00a0<\/strong>Barclays Africa Group Limited (\u201cBarclays Africa\u201d or \u201cthe Group\u201d) is listed on the Johannesburg Stock Exchange and is one of Africa\u2019s largest financial services groups.<\/p>\n Barclays Africa offers personal and business banking, credit cards, corporate and investment banking, wealth and investment management and insurance.<\/p>\n The Group\u00a0operates in 12 countries with approximately 40,000 employees, serving close to 12 million customers.<\/p>\n The Group registered head office is in Johannesburg, South Africa and owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa (Absa), Tanzania (Barclays Bank Tanzania and National Bank of Commerce), Uganda and Zambia.\u00a0 The Group also has representative offices in Namibia and Nigeria.<\/p>\n –<\/p>\n By: Lawrence Segbefia & additional file from Barclays Africa Group\/citibusinessnews.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" Barclays Africa Group has indicated that the bank has not concluded decision to list its Ghana operations on the Ghana Stock Exchange(GSE). The Barclays Africa Group is listed on the Johannesburg Stock Exchange. The bank which is undergoing a sell-down completed its first tranche sale of 12.2 percent in May 2016. Speaking to journalists across […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[121,32],"tags":[],"yoast_head":"\n