Absa Group earnings increase

Barclays Bank of Botswana’s parent company Absa Group Limited has recorded a 4 per cent growth in group’s revenue to R75.7 billion (P56.53 billion) for the year 2018.

Absa Group – one of Africa’s largest financial services providers – saw its earnings rise due to essential contribution of African operations to the group’s overall performance.

The Group registered a normalised headline earnings increase of 3% to R16.1 billion compared with 2017 and revenue increase of 4% to R75.7 billion. Shareholders will receive a final dividend of R 11.10 per share, which is a 4% increase from the final 2017 dividend.

Rene Van Wyk – Acting Absa Group CEO – said 2018 was a year of almost unprecedented activity for the Group as the business was re-set as an independent bank after Barclays Private Limited Company reduced its shareholding to a minority stake in 2017.

Additionally, in 2018 Absa Group announced a new strategy to reposition itself as an independent African banking group focused on growth and launched a new operating model to structure the business for delivery against the new strategy.

“In June the Absa Group achieved regulatory deconsolidation from Barclays PLC, which meant that regulators no longer regard the two businesses as a consolidated entity. With such major changes bedded down in 2018, the framework for the business has been reset. The strong leadership team and structure that was put in place over the past year can now deepen the efforts within their business units to deliver against our ambitious growth strategy,” he said.

The impressive performance of the Group was also banked on the latter ‘stepping up of its digital offerings amongst others; Chat Banking on WhatsApp launched, enabling customers to conduct basic  banking on one of the world’s most-used chat platforms, a world first.

A mobile app called Timiza was also launched in Kenya, allowing customers to save and borrow money without having to visit a branch. Absa was also first in South Africa to launch Samsung Pay.

Outgoing Barclays Botswana Managing Director, Reinette van Der Merwe, said the transition by Barclays to a new brand in the near future presents the unique and exciting opportunity to leverage the rich African rich market and deep understanding of the local market to drive relevant initiatives that can unlock Botswana’s potential and support its growth.

Locally, the Barclays Bank according to its spokesperson Spencer Moreri will announce its financial results for the year 2018 on March 21.

Moreri, when quizzed on the in-coming MD, noted that an official announcement will be made soon with regards to that. Internal company staff was recently informed that Keabetswe Pheko–Moshagane will be assuming duties as new MD.