LATEST- BARCLAYS AFRICA REPORTS HIGHER ANNUAL PROFIT, AIDED BY FALL IN IMPAIRMENTS

A Barclays branch in Harare is seen in this file image. Picture: Nicola Mawson

JOHANNESBURG- South Africa’s number two lender by market value, Barclays Africa Group has reported a 4% rise in annual profits on Thursday, aided by the substantial decrease in impairments.

The primary measure of profit in South Africa, that gets rid off one-off items, EPS come in at at 1,837.7 cents in the year ending December compared with 1,769.4 a year earlier in 2016.

Net income grew 1 % to 42.32 billion rand, while net interest margin was unchanged at 4.95 percent.

Barclays Africa said credit impairments fell 20% to R7.0 billion.

Barclays Africa said growth in the United States was an unlikely surprise in the second half, including in the European market, whilst in Asia Japan and China grew at or above average numbers.

This growth helped and aided the slow growth numbers in developed and larger markets, that accounts for 80% of the Barclays Africa income, including South Africa.

Slowing growth economic numbers have made it harder for lenders such as Barclays Africa to increase their lending, as interest rates rises in home lending,  it will affect retail customers consumption’s rates.

The election of Cyril Ramaphosa has boosted confidence in the markets.

Photo Credit- Businessdaily

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