Barclays reviews Africa strategy
one of the British banking group’s four main
divisions.
A decision to end the bank’s 100-year history
of operating in Africa would mark a dramatic
reshaping of the group by Mr Staley and
prompt a significant shift in the landscape of
South African banking.
B
ob Diamond, the former chief executive
of Barclays pushed Africa as one of the
bank’s biggest growth opportunities. Now, his
latest successor is considering making a full
or partial exit from the continent.
Jes Staley, the former JPMorgan Chase
executive, who took over as Barclays CEO in
December, and his chairman John McFarlane,
have started consulting “regional experts”
about the African business — which makes up
Barclays Africa Group Limited, which includes
the South African Absa bank, is listed on the
Johannesburg stock exchange and is 62 per
cent owned by the British bank. It is one of
the largest banks on the continent, with a
$66 billion balance sheet, more than 40,000
staff and 1,267 branches across 12 countries,
including Zambia.
On one level, the African unit is outperforming
its parent. Last year, its net profits rose 10 per
cent to nearly $900 million, giving it a healthy
return on equity of 16.7 per cent.
FARMERS GAZETTE
November 2015
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