07 Aug 2014

Barclays Africa Group Limited (Barclays Africa) is on track to deliver on the ambitious targets laid out at its annual results in February.

Speaking during a media round table teleconference at the Barclays Head Office in Gaborone, chief executive officer of Barclays Africa, Ms Maria Ramos said, “we have taken the time to develop the right strategy for Barclays Africa and have been very clear that this would take three years to deliver.

Our results for the first six months of the year demonstrate the traction we are gaining in executing on this strategy and how well we are progressing towards realising our ambitions on the continent,” she said.

The Group’s financial results for the six months which ended on June 30, 2014 with earnings in South Africa increased by 6 per cent to R5.1 billion and by 34 per cent to R1 billion outside of South Africa, reflecting a 10 per cent increase to R6.1 billion; underpinned by strong financial momentum across the business, despite a contraction in South Africa’s GDP in the first quarter of the year, she said.

Ms Ramos said that they were transforming the business in the right areas by executing on their strategic priorities and were determined to accelerate their momentum even faster.

She noted that their revenues have grown by 7 per cent while their return on equity has improved to 16.1 per cent. 

She was confident that they can achieve the necessary milestones this year to reach their 18-20 per cent target.Ghana, Kenya, Botswana and Zambia are core markets outside South Africa and the growth in these markets had been strong with a portfolio that now constitutes 20 per cent of Group revenue; which is already within the range they set for themselves, she added.

She noted that their priorities lie in investments in corporate banking across the continent, concluding their East Africa expansion particularly in Kenya, building the strength of their management team and the turnaround programme for the Group’s South African Retail and Business Banking (RBB) franchise.

Ms Ramos noted that with the right strategy they will continue to look into the large market in Nigeria and other opportunities to add onto their business.

She said she has no doubts that they will be the “Go-To” Bank in Africa. The Barclays Bank of Botswana entity’s financial results are also due to be released this month, she added. ENDS