Barclays Africa squeezes higher profit from lower income
A stronger rand hit income from the rest of Africa division at Absa’s parent, but that division is expected to overtake SA in the second half
Absa’s JSE-listed parent, Barclays Africa Group, managed to squeeze higher profit from lower revenue in the six months to end-June, it reported on Friday morning.Normalised revenue decreased 1% to R36bn. The group’s overall interim income declined 0.5% to R36.3bn, due to a sharp increase in head office costs and lower contributions from its rest of Africa and its wealth, investment management and insurance (Wimi) divisions.Barclays Africa’s South African banking division grew income by 1.1% to R26.2bn, contributing 72% of the total. Income from its rest of Africa division fell 6.3% to R7.7bn due to the rand strengthening. Income from its Wimi division fell 0.3% to R2.7bn while head office costs rose 68%, to reduce income by R545m.Headline earnings grew 5% to R7.6bn thanks to the South African banking division increasing its contribution by 6.4% to R6bn and the rest of Africa division by 19.4% to R1.5bn. Wimi’s headline earnings contribution fell 7.6% to R574m.Barclays Africa raised ...
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