Barclays Africa has been the worst performer among banking stocks on the JSE in 2017, despite evidence that it offers value for money. "I can only conclude that people are awaiting finalisation of the [Barclays Plc] transaction," said Andrew Vintcent, a portfolio manager at ClucasGray Asset Management, who believes the share is a buy at these levels. Barclays Africa had come under pressure on worries of an open-market sell-down by Barclays Plc, which could create a stock overhang and reduce the value of the share, Avior Capital analyst Harry Botha said. "It doesn’t change the value of the bank", which continued to deliver consistent growth and return on equity (ROE), he said. For the year to December 2016, Barclays Africa posted an ROE of 16.6%, down on the previous year’s 17%, but in line with peers. The bank grew headline earnings 5% to R14.98bn. An open-market sale would be preferable, Botha said. "I can’t think of a buyer that could offer strategic opportunities." The bank annou...
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