04 Mar 2018

Barclays Africa Group has in the past year registered increased earnings, and the group has a vision for the future with their new strategy and plans to rebrand and trade as Associated Bank of South Africa (ABSA).

The group has released its first annual financial results since the successful conclusion of the reduction by Barclays PLC of its majority shareholding in Barclays Africa Group last year.

The group registered an impressive increase in earnings as income increased by one per cent to R72.9 billion while headline earnings increased four per cent to R15.6 billion.

Cost-to-income ratio rose to 56.8 per cent from 55.2 per cent, and the group continues to have solid balance sheet assets of R1.2 trillion.

Barclays Africa Group wants to double its market share to 12 per cent of African banking revenues, and the vision was unveiled along with a new business strategy to deliver on the ambitious goal.

Barclays Africa Group CEO, Ms Maria Ramos said the strategy they were presenting was based on comprehensive insight and informed thinking.

“We have conducted a rigorous review of our environment, our competitors, our customers and our capabilities,” she said

Ms Ramos added that the result of their work meant that they had a forensic view of the market, their place in it and the opportunity it afforded.

She said they now had clarity of intent and an actionable plan.

She said Barclays was a scalable, digitally led business and passionate about innovation.

The group also revealed plans to re-brand to rename itself ABSA Group Limited in due course and trade as ABSA across its operations (currently branded Barclays) in Africa, pending shareholder and regulatory approvals.

A media release says Barclays Africa Group undertook extensive research internally and externally in a process that included more than 130 000 conversations with employees and stakeholders about the brand and strategy of the group.

The release further notes that ABSA is currently the brand of Barclays Africa Group’s South Africa business, and that the ABSA brand has substantial equity as one of the largest banks in South Africa enjoying recognition in many of the countries in which Barclays Africa operates under the Barclays brand.

The rebranding might be effective from June this year in South Africa while the rest of the group’s operations in other African countries will have the mid-2020 rebranding deadline.

“We are re-setting our business with a bold, new growth strategy that leverages our existing footprint and market insights,” Ms Ramos said.

She said a new identity was further evidence of the scale of the transformation and change in the group’s business, adding that “a new brand for a new banking group.” ENDS