Barclays Africa profits rise 10pc on sale talk

Barclays Africa has reported solid results as its British parent company talk of withdrawing operations from the region.

The unit has recorded headline earnings up 10 percent, with a ROE 17 percent.

The Unit’s earnings increased 10percent to R14 287m from R13 032m in its financial results ended 31 December 2015. Diluted headline earnings per share also grew 10 percent to R16.86 from R15.38.

Earnings in other 11 countries under the group grew 17percent to R2.3bn while that of South Africa rose 8 percent to R12.0bn.

However, tough conditions in South Africa hampered its growth in the region-SA unit accounts for 80 percent of total profits.

“South Africa’s growth slowed under the pressure of drought, continued electricity supply challenges and falling commodity prices,” the bank said, reporting on its operating environment.

“Weak consumer confidence and rising interest rates weighed on household spending,” it added. “Economic growth is forecast to have slowed to 1.3percent in 2015 from 1.5percent in 2014.

“The rand lost a quarter of its value against major currencies during the year.

The African company accounted for 13pc of Barclays’ core profit in the first nine months of 2015, with growth in earnings ranked the slowest among the British lender’s main businesses.