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Barclays Africa boosts earnings as impairments fall

by , 11 February 2014

Earlier today, Barclays Africa released its full-year results to the end of December. A drop in impairments boosted the bank's full-year's earnings. Shares in Barclays Africa rose on release of the results. Let's take a closer look at what the results revealed…

This morning, Barclays Africa Group reported “an expected 14% rise in full-year earnings,” reports IOL. This was mostly down to a fall in “bad loan costs in its retail and commercial mortgages”.

Over the 12 months to the end of December, “net income rose to R12 billion from R10 billion a year earlier,” says Bloomberg. Headline earnings per share rose to R13.97. This came in higher than forecast R13.67 in a survey of 15 analysts conducted by Bloomberg.

Acquisitions helped boost “headline earnings by 14% to R1.923 billion,” notes Fin24. This after Barclays “sold most of its African operations to lender Absa in exchange for a bigger stake in Africa’s third biggest banking group”.

This meant Barclays Plc increased “its stake in Barclays Africa to 62.3%,” reports BDLive. CEO of Barclays Africa, Maria Ramos, said they now have “a clear set of deliverables to create a truly pan-African franchise”.

Over the period, “credit impairments fell 21% to R6.99 billion,” adds Bloomberg. Non-performing loans also fell “to 4.7% of total lending”. That’s 5.9% lower than the previous year.

Shares in Barclays Africa rose on the back of the results

At time of writing, shares in Barclays Africa were 4.22% higher at R129.30.

Compared to the other big banks, shares in Barclays Africa are faring better this year, notes IOL. Shares are only down 6%, compared to a 13% fall in FirstRand and a 9% drop in Standard Bank.

So across the board, a good set of results from Barclays Africa. They showed an improvement across the board.



Barclays Africa boosts earnings as impairments fall
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