Business & Finance

Barclays Africa On Track

The chief executive officer of Barclays Africa Group says the group has seen an 11 per cent increase in headline earnings for the six months ended June 30 from R6.1 billion to R6.8 billion.

Presenting the group’s financial results via a telecom press brief from Johannesburg, Ms Maria Ramos said the group was on track to deliver on its three year strategic priorities and market commitments.

She said the group was driven by a seven per cent increase in pre-provision profit to R14.3 billion, and that it has largely been due to strong growth in the Retail and Business Banking (RBB) on the back of customer growth.

“Our growth strategy is now half way through a three year journey and these results demonstrate that it is working,” she said, adding that the group has achieved what they promised, and that is delivering a strong performance driven primarily by the turnaround of RBB through targeted growth and cost reduction.

She further said the group’s revenue grew six per cent to R32.4 billion, as the net interest income increased by seven per cent and non-interest income rose by four per cent while operating expenses grew by five per cent to R18.1 billion.

Ms Ramos further said the rest of Africa headline earnings grew by 22 per cent to R1.2 billion, and that South Africa rose to eight per cent to R5.5 billion. She said the group’s investment in digital technology, innovation and new state of the art branches is already paying dividends.

“The transformation of the customer experience has seen the retail bank gain almost half a million customers during the half while Internet banking users increased 17 per cent and banking volumes through the Absa App more than doubled,” Ms Ramos noted.

She further said the group’s earnings remain well diversified by business and product line. “Our strategy is based on the strength of our franchise, an African bank that is fully local, fully regional and fully international.

These results demonstrate that we are on track to achieve the commitments we have made, and I remain excited by the potential of our business across the continent,” she concluded.