Barclays in profit despite challenges

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BARCLAYS Zimbabwe on Thursday posted a $1.7m profit after tax in the half year ended June 30.
This was despite operating in a challenging economic environment characterised by a liquidity crunch, company closures and a downgrade of Zimbabwe’s economic growth outlook this year.
Barclays Zimbabwe board chairman Anthony Mandiwanza said despite the gloomy economic outlook, the bank’s balance sheet was sound.
“The bank meets the minimum capital requirements and as at June 30, registered a total capital adequacy ratio of 17% ahead of the regulatory minimum of 12%,” Mandiwanza said.
The Zimbabwe Stock Exchange-listed Barclays Zimbabwe, which was excluded from Absa’s purchase of its UK parent’s African operations, has also submitted its proposals to monetary authorities in respect of the minimum capital threshold of $100m which applies from 2020.
Profit after tax of $1.7m was up from $844,000 in the same period last year.
Barclays Zimbabwe’s loan book increased 14% as it extended facilities to businesses and individuals across all sectors. Deposits at Barclays grew 3% from the same period to $238m this year.
Barclays Zimbabwe MD George Guvamatanga said compared with December last year, deposits were down 4%, largely reflecting the seasonal nature of part of the deposit base. Mr Guvamatanga said the bank’s focus in the second half would be on growth through technology.
E-platforms and services rolled out by Barclays Zimbabwe have all realised significant growth.
These include 8% growth in its money transfer product, CashSend, internet banking, which has grown 169%, and products under its bancassurance portfolio, which increased 160%.Advertisement