Arab Today, arab today barclays africa scaling back not linked to economic woes
Last Updated : GMT 22:03:31
Arab Today, arab today
Arab Today, arab today

CEO Maria Ramos:

Barclays Africa scaling back not linked to economic woes

Arab Today, arab today

Arab Today, arab today Barclays Africa scaling back not linked to economic woes

Barclays Africa chief excutive Maria Ramos
Johannesburg - AFP

Barclays's plan to scale back its Africa operations is linked to global regulatory challenges, not unfavourable economic conditions on the continent, the bank's Africa chief executive has told AFP.

"We did not make this decision because of the economic cycle," Maria Ramos said in an interview in Johannesburg late Thursday.

"The regulatory environment has changed globally and it's more difficult for large banks to hold on to subsidiaries like ours," she said.

The British lender early this month announced that it will sell down its 62.3 percent interest in Barclays Africa to just 20 percent over the next two to three years, fuelling speculation over the decision.

"We are at the beginning of that process but since the announcement a week ago, there has been a lot of interest," said Ramos.

The lender said it would now focus on its two core markets, Britain and the US.

Barclays Africa Group Limited (BAGL) has insisted however that it remained committed to the continent, where it has a presence in 12 countries, with assets valued at $3 billion.
South Africa, the continent's most advanced economy, is Barclays Africa's major market.

The bank re-entered South Africa in 2005, after it acquired a 55.5 percent in one of the country's four largest banks, ABSA.

The acquisition marked its return to the market it left in 1986, at the height of apartheid.

The purchase was at the time the largest acquisition of a local bank by a foreign bank.

- 'We are not going' -

Ramos was upbeat about the state of the South African economy, which represents the majority of revenues for Barclays Africa.

"South Africa is still a significant economy of this continent, it's a large economy of this continent," she said, shrugging off suggestions that the country's slow economic growth might have contributed to the bank's exit.

"I remain exceedingly positive over the medium to long term. This economy has gone through many many things."

"We see enormous potential on the African continent. We have a very strong franchise with very good results."

South Africa, which is lauded for its sound banking system, is experiencing poor growth. The economy is expected to grow less than one percent in 2016, mainly due to lower commodity prices, after 1.3 percent growth last year.

Ramos said the African subsidiary, which has as independent board of directors, would remain in South Africa, where the company is listed on the Johannesburg Stock Exchange.

"Barclays has a long history in Africa, nearly a 100 years. We are not going," she said.

"We still see enormous potential in Africa and we have a strong franchise with good results."

But this month the giant lender revealed annual losses after tax of £394 million ($549 million, 505 million euros).

Ramos stated that the return on equity of the African subsidiary was halved due to the burden on the parent bank.

The bank also said it was looking into "suspected money laundering related to foreign exchange transactions in South African operation Absa Bank Limited".

In January, Barclays also announced plans to exit Russia.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today barclays africa scaling back not linked to economic woes Arab Today, arab today barclays africa scaling back not linked to economic woes

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Rebel supporters flood Yemen streets

GMT 06:39 2017 Monday ,27 March

Rebel supporters flood Yemen streets
View News in Arabic - Business: حوارات وتقارير
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Nermein Al Fekki films “Foxes in the Valley”

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday