Barclays Mozambique increased income by 50% in 2015

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Barclays Mozambique increased income by 50% in 2015

1:32 CAT | 03 Mar 2016

Barclays Mozambique income increased 50 percent in 2015, the bank announced one day after the confirmation of changes in the capital structure of its main shareholder, Barclays Africa.

Although Barclays Mozambique accounts for the year 2015 are not yet public, the bank has also announced that its efficiency ratio improved six percentage points over the previous year, making it “at this time, one of the best-capitalized banks” in the country, with “high levels of liquidity”.

Barclays Mozambique is 98.1 percent owned by Barclays Africa (former ABSA group), which is preparing to announce deep changes in its capital structure.

On Tuesday, London-based Barclays PLC confirmed its intention to reduce its majority 62.3 percent stake in Barclays Africa in the next two to three years, citing recent regulatory changes by which it must abide.

In the accounts presented on Tuesday, Barclays Africa announced 2015 increases in profits of 10 percent and a 17 percent return on capital, with operations outside South Africa accounting for 21 percent of the income of the Johannesburg-listed institution.

British Barclays PLC the same day reported a 2015 profit of BGP2,696 million (EUR3,450 million), a 3 percent drop from 2014.

Anticipating the Barclays PLC capital reduction announcement, Barclays Africa on Monday assured its customers in 12 African countries, including Mozambique, that they would not be affected.

“Our customers can be assured that they can continue to have the same kind of business relationship with us today, just as they have been doing until here,” said Maria Ramos, executive director of Barclays Africa, in a statement sent by the institution to Lusa in Maputo.

Any notice of the weight of Barclays PLC in the institution, said Maria Ramos, “does not impact any shareholder structure or control of these operations.”

Despite this change, “Barclays Africa reiterates its commitment to operating in Africa and remains very optimistic regarding the growth of business and customer base,” said the statement.

The financial group stresses that it is an independent entity, listed on the Johannesburg Stock Exchange and regulated by the South African central bank, stressing that it is “well capitalized and with a strong and steady profitability record.”

The statement recalls that in 2013, Barclays Africa held simultaneous purchase of 12 banks in the continent, in order to become a leading bank on the continent.

“In making this decision, we have to put the future of this organization completely in our hands,” said Maria Ramos, expressing optimism about the operation in Africa, where the institution claims to have 12 million customers.

Barclays Africa is the majority shareholder, or in some cases the only one in its operations in South Africa, Botswana, Ghana, Namibia, Mauritius, Seychelles, Uganda, Tanzania, Kenya and Mozambique.

Barclays Mozambique is held almost entirely by Barclays Africa and, according to company information, has 900 employees, 43 branches, 92 ATM stations and more than 400,000 customers across the country.

In the last available accounts in the first half of 2015, the company had a net profit of 61.4 million meticais (EUR 1.1 million) after losses in the previous two years.

In 2014, although in negative territory, an injection of capital enabled the institution led by former Prime Minister Luisa Diogo to increase revenues by 44.3percent compared to 2013.

Source: Lusa