Barclays Africa first-half profit up on consumer bank boost

Johannesburg - Barclays Africa Group [JSE:BGA] said first-half profit climbed 9.8% after retail and business banking earnings rose, bad debts declined and it expanded African operations.

Net income rose to R6.77bn in the six months to end-June from R6.17bn a year earlier, Johannesburg-based Barclays Africa said in a statement on Wednesday. Diluted earnings per share excluding one-time items increased 11% to R7.97 and the bank declared an interim dividend of R4.50 per share.

Barclays Africa, which is controlled by London-based Barclays Plc, is expanding on the continent to boost revenues from regions growing faster than many developed nations.

Having lost customers as it slowed lending when bad debts jumped three years ago, it has been investing in technology and branches to lure clients.

John McFarlane, executive chairperson of the parent company, supports the African growth strategy, the Johannesburg lender has said.

Barclays Africa expects its net interest margin to widen “slightly” from 2014, it said in Wednesday’s statement. The bank foresees mid-single digit loan growth, with lending in corporate and investment banking increasing faster than retail and business banking.

Earnings from the rest of the continent are likely to grow faster than South Africa this year, it said.