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NewsDay

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We are here to stay — Barclays

Business
BARCLAYS Zimbabwe said yesterday the bank was here to stay on a day in which its parent company downgraded it to a non-core division and announced plans to sell the unit.

BARCLAYS Zimbabwe said yesterday the bank was here to stay on a day in which its parent company downgraded it to a non-core division and announced plans to sell the unit.

BY BUSINESS REPORTER

The British multinational banking giant, Barclays Plc, announced yesterday that it was putting the local unit in its non-core division with an intention to sell in future. Barclays Plc owns 68% shareholding in Barclays Zimbabwe. It said it could not continue to combine Barclays Bank Zimbabwe with Barclays Africa Group Limited and the business “is no longer a good fit with Barclays core strategy”. It also said it would reduce its 62,3% interest in Barclays Africa Group Limited over the coming two to three years, “to a level which will allow it to be deconsolidated from a legal and regulatory perspective”.

Barclays Zimbabwe managing director George Guvamatanga told journalists that the local unit was still part of the Barclays Plc group.

Barclays-bank

He said the switch to non-core business was an internal matter.

“We will continue to pursue our strategy. It’s a better platform today. The balance sheet is stronger and we are getting rid of non-core assets. We will accelerate our pace for growth in the interim period. We are one of the most solid banks,” Guvamatanga said.

In its financial results for the year ended December 31, Barclays Zimbabwe’s net interest income was up 18% to $16,6 million from $14,1 million in the same period in 2014.

Total income was down 0,4% to $46 million. Profit after tax was 41% to 6,6 million from the $3,9 million recorded in the same period in 2014.

Loan loss ratio was 1,2% up from 0,4% in 2014. The bank attributed the increase to the growth in the loan book and the basis of general provisions having been reviewed to reflect emerging trends from the global and local economic cycles.

Chief finance officer Sam Matsekete said the bank had $29 million in Afreximbank’s guaranteed securities of its $30,9 million in investment securities.

Guvamatanga said the bank would ensure that risk was controlled in 2016 within an acceptable risk appetite saying the institution had demonstrated “our ability to manage the risks within the levels”.

He said the bank would broaden its product range and would introduce home loans during the course of the year. Guvamatanga said there was need for realignment of the economy in terms of pricing taking into account the depreciation of the South African rand and the drop in fuel prices.

“We have expectations as a bank to our suppliers for prices to be realigned,” Guvamatanga said.