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Barclays Africa Group’s earnings increase as impairments decline

Barclays Africa Group’s earnings increase as impairments decline
March 07
10:05 2018


Barclays Africa Group, one of the largest banking groups in Africa, last week 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 reported a 4% increase in headline earnings in 2017 as impairments declined substantially from a high base in 2016. Return on equity of 16.4% remains strong. Headline earnings, a measure analysts use to gauge profitability, grew despite the continued slow economic expansion in some of the Group’s largest markets, including South Africa, where the Group generates approximately 80% of its income.

Barclays Africa Group continues to have solid balance sheet assets of R1.2 trillion and strong capital and liquidity levels – these are measures of the strength of buffers banks have in place to protect customer deposits. Barclays Africa Group’s separation from Barclays PLC is progressing well and the parties continue to work together to ensure a seamless separation.

Key points

  • Dividend increased 4% to 1 070 cents per share
  • Income increased 1% to R72.9 billion
  • Headline earnings increased 4% to R15.6 billion
  • Impairments declined 20% from a high base in 2016
  • Cost-to-income ratio rose to 56.8% from 55.2%
  • Return on equity decreased to 16.4% from 16.6%
  • Balance sheet at R1.2 trillion, with strong capital and liquidity levels


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