adminBarclays PLC continues to explore strategic and capital market opportunities to reduce its shareholding in Barclays Africa to achieve regulatory de-consolidation, a senior official has said. De-consolidation refers to the termination of a consolidated group, allowing the members to function as independent entities (companies) once again.United Kingdom-based Barclays PLC, which owns 62,3 percent of Barclays Africa, earlier this year announced its intention to reduce its shareholding in the group.
Barclays Africa group chief executive officer Maria Ramos said as Barclays PLC executes its divestment in Barclays Africa, it remained focused on building momentum in each of its businesses and delivering “shared growth” across the continent.
Ms Ramos said this while providing an update on the Barclays PLC divestment process during presentation of the group’s first half results of this year last Friday.
“The first sale tranche of 12,2 percent was successfully concluded on May 5 and reduced Barclays PLC’s shareholding to 50,1 percent.
“We continue to work closely with Barclays PLC, including planning for the operational separation of the two businesses in order to preserve value for all stakeholders,” she said.
She added; “Barclays Africa and Barclays PLC continue to engage with regulators as the divestment process is subject to all relevant regulatory approvals.”
During the period under review, revenue from the rest of Africa increased to 23 percent of total revenue, well within the group’s target range of 20-25 percent.
Cost to Income ratio for the group improved to 53,4 percent showing good progression towards its medium-term target of low 50s.
Return on Equity was 16,1 percent which is marginally down over the prior year in line with its guidance, and remains short of medium-term target of 18-20 percent.
Ms Ramos said at a regional level, Sub-Saharan Africa’s economy was under severe pressure as the combination of depressed commodity prices, drought, foreign exchange scarcity, policy uncertainty and electricity shortages weighed on growth.
In the outlook, Ms Ramos said inflation was a concern in several markets on the continent and as a result, monetary policy was likely to remain an “economic headwind.”
“As a consequence, average GDP growth in our rest of Africa presence countries is expected to be the lowest since 2002,” she said – New Ziana.
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