Barclays Africa earnings up by 10%

by Agency reporter

Barclays Africa Group’s posted an expected 10 per cent rise in first-half headline earnings on Wednesday boosted by its Africa operations.

Reuters reported that the pan-African lender, majority owned by the eponymous British bank, said headline earnings per share came in at 720.9 cents in the six months to end June, compared with a restated 655.7 cents a year ago.

Barclays said net interest income – the measure of income from lending – grew 10 per cent to 17.197 billion rand ($1.62bn) as the bank passed on higher interest rates.

Credit impairments fell seven per cent after a push to rein in bad loans, which spiked in 2013 for most South African banks following a spate of unbridled unsecured lending.

Reuters had quoted the Deputy Chief Executive, Barclays Africa, David Hodnett, as saying the bank “sees ‘mid single digit’ loan growth continuing, reflecting its more cautious stance to writing new business.

It said Hodnett made the comment at Barclays Africa’s first-half earnings presentation. The bank, an arm of London-based Barclays Plc, reported loan growth of around five per cent in the six months to the end of June.