Barclays Zim divesture to be completed in 2H

Barclays Zim divesture to be completed in 2H
Published: 16 August 2017
Barclays Plc, parent company for Barclays Zimbabwe expects to complete its divestiture from the local operation during the second half of 2017 as the banking firm eyes maintaining profitability going forward.

On March 01, 2016, Barclays PLC announced its intention to divest from Barclays Africa, including Barclays Bank of Zimbabwe Limited.

In light of this, further announcements were made revealing the group had signed a share purchase agreement with FMB Capital Holdings of Malawi in May this year.

Managing director Mr George Guvamatanga said the pending divesture allowed the financial services firm to prepare for a separation from the group while putting significant efforts towards review of systems and processes to ensure a seamless transition.

"In turn, we have managed to balance the extent to which we can commit new investments resulting in the deferring of certain efforts that require bigger changes to systems and platforms.

"We are clear that the success of this divesture is embedded within strong customer relationships, increased efforts to ensure excellence in customer experience and an engaged colleague franchise that is focused on delivery of business growth," he said.

The bank indicated it would continue to provide progress updates on the transaction while Barclays Plc commits to assist to ensure a smooth transition of systems upon completion.

Meanwhile, the bank reported a 39 percent growth in total income to $35 million for the half year to June 2017.

The proportion of non-funded income to total income increased to 71 percent reflecting higher transaction volumes across the bank's channels and constrained growth in the lending portfolio.

In line with the growth in total income, the bank registered profit after tax of $9, 5 million translating to basic earnings per share of 0,44 cents from 0,15 cents in 2016, as all income lines showed improvements on prior year.

Operating expenses increased to $21, 97 million from $20, 3 million incurred in the same period last year, on higher administration costs.

Loan portfolio growth has been constrained by lower utilisation of facilities by corporate clients with a number of players seeking access to foreign currency within their working capital requirements.

This also resulted in decline in loans to deposit ratio to 29 percent from 37 percent as at December 2016. Non-performing loans ratio increased to 0,8 percent from 0,3 percent but the bank said it would maintains cautious lending practices in the wake of high credit risk environment.

For the six months under review, total deposits fell to $390, 6 million from $280, 4 million previously. The bank did not declare a dividend.
- bh24
Tags: Barclays,


Latest News

Latest Published Reports

Latest jobs