Home Business Business integration boosts Barclays Africa revenue by 10%

Business integration boosts Barclays Africa revenue by 10%

Pan-African lender, Barclays Africa Group on Wednesday posted a 10 percent rise to R6.1 billion ($575 million) in its first-half (H1) headline earnings. This was owed largely to its newly integrated Africa operations.
The rise was however expected as Barclays had hitherto estimated a headline earnings rise between 8 and 11 percent.
The group, majorly owned (62.3 percent) by UK banking giant, Barclays plc said headline earnings per share grew to 720.9 cents within this first six months, compared with a restated 655.7 cents a year ago. Its shares have gained more than 30 percent so far this year, trouncing a 20 percent advance by Johannesburg’s banking index.
The third-largest lender on the Johannesburg bourse, Barclays Africa Net interest income grew 10 percent to 17.2 billion rand as the bank passed on higher interest rates. “The Barclays Africa Limited acquisition was earnings accretive, increasing the group’s HEPS by 2.3 percent,” the bank revealed.
Headline earnings from the rest of Africa grew by 34 percent to 1 billion rand ($94.26 million), faster than the 6 percent growth experienced in the bank’s biggest market.
Barclays Africa Group was formed last year through the combination of Absa Group Limited and Barclays’ African operations with Barclay’s plc holding a 62.3 percent stake in the combined entity.
The new name reflects the enlarged group’s pan-African focus with registered head offices in South Africa and controlling majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, Tanzania (Barclays BankTanzania and National Bank of Commerce), Uganda and Zambia. The Group also has representative offices in Namibia and Nigeria, as well as bancassurance operations in Botswana, Mozambique, South Africa and Zambia. Barclays Bank PLC has operations in Egypt and Zimbabwe, which are part of the African business and continue to be run by Barclays Africa Group’s management. (VENTURES AFRICA)
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