Maria Ramos
Barclays Africa Group has announced its intention to change its name from Barclays Africa Group Limited to Absa Group Limited, subject to regulatory and shareholders’ approval.
The name change will be effective from the date set out in the amended registration certificate issued by the Companies and Intellectual Property Commission (CIPC) as contemplated in Section 16(9) of the Companies Act.
A special resolution to this effect will be included in the notice of Annual General Meeting (AGM) to be issued to shareholders of Barclays Africa Group on 29 March 2018 for the meeting on 15 May 2018.
Subject to all conditions precedent above being met, the proposed share code and ISIN from the effective date of the name change currently 30 May 2018 will be: New Share code – “AGB”, New ISIN – ZAE000255915.
The Transitional Trade Mark License Agreement, entered into between Barclays Africa Group and Barclays PLC as part of the separation arrangement, inter alia, provides that the use of the name “Barclays Africa Group Limited” is permitted up to 6 June 2020 provided BAGL announces the intention to change its name on or before 6 June 2018.
In South Africa, the term “Member of Barclays” must be removed by 6 June 2018, subject to an additional two-year run off period in respect of debit and credit cards; and the Barclays brand may only be used in the rest of Africa up to 6 June 2020, subject to an additional two-year run off period in respect of debit and credit cards.
The group’s dividend increased 4% to 1 070 cents per share income increased 1% to R72.9 billion.
Headline earnings increased 4% to R15.6 billion while impairments declined 20% from a high base in 2016.
Cost-to-income ratio rose to 56.8% from 55.2% while return on equity decreased to 16.4% from 16.6%.
Balance sheet stood at R1.2 trillion, with strong capital and liquidity levels.
This is the first annual financial results released by the group since the successful conclusion of the reduction by Barclays PLC of its majority shareholding in Barclays Africa Group last year.
The Group reported a 4% increase in headline earnings in 2017 as impairments declined substantially from a high base in 2016. Return on equity of 16.4% remains strong.
Headline earnings, a measure analysts use to gauge profitability, grew despite the continued slow economic expansion in some of the group’s largest markets, including South Africa, where the group generates approximately 80 percent of its income.
Barclays Africa Group continues to have solid balance sheet assets of R1.2 trillion and strong capital and liquidity levels – these are measures of the strength of buffers banks have in place to protect customer deposits.
Barclays Africa Group’s separation from Barclays PLC is progressing well and the parties continue to work together to ensure seamless separation.
A business desk report