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Salient features
- Diluted headline earnings per share (HEPS) increased 10% to 1 537,5 cents.
- Declared a total dividend per share (DPS) of 925 cents, up 13%.
- Rest of Africa headline earnings grew 14% to R2,0 billion and South Africa rose 9% to R11,1 billion.
- Return on equity (RoE) improved to 16,7% from 15,5%.
- Pre-provision profit increased 5% to R27,3 billion.
- Revenue grew 6% to R63,1 billion, as net interest income increased 10% and non-interest income rose 2%, while operating expenses grew 7% to R35,8 billion.
- Credit impairments fell 10% to R6,3 billion, resulting in a 1,02% credit loss ratio from 1,20%.
- Barclays Africa Group Limited’s Common Equity Tier 1 (CET1) of 11,9% remains above regulatory requirements and our Board targets.
Barclays Africa Group Limited (‘Barclays Africa’ or ‘the Group’) has delivered solid financial results for the year ended 31 December 2014 and is on track to deliver on its strategic priorities and financial commitments. The Group today reported a 10% increase in headline earnings to R13 billion from R11,8 billion in 2013 as pre-provision profit rose 5% to R27,3 billion and credit impairments declined by 10% to R6,3 billion.
Maria Ramos, Chief Executive of Barclays Africa Group, says:
“Our strategic execution is on track and we have delivered solid growth in our headline earnings in line with expectations. Demonstrable progress has been made towards meeting our ambitious financial commitments.”
“The Group has never been in a stronger position than it is today. These results clearly show that we have built a solid foundation and that we are building the ‘Go-To’ bank in Africa. We will keep improving our business in South Africa by picking up the pace on turning around RBB while simultaneously driving growth in our Corporate Bank and WIMI franchise across the continent. There is great upside in extracting more value from our existing portfolio so this is our main priority for 2015,” adds Maria Ramos.
The Group declared a 13% higher total ordinary dividend per share of 925 cents given its strong Common Equity Tier 1 (CET1) levels and internal capital generation. This further demonstrates the sustainable returns created for our shareholders, which is also reflected in the Barclays Africa share price, which has appreciated by 47.2% in the past 12 months (to end February), and the R21 billion in dividends declared over the past two years.
During the period under review, Retail and Business Banking’s (RBB) headline earnings increased 9% to R8,3 billion, due largely to lower credit impairments and a strong performance by Business Banking South Africa. Home Loans’ earnings jumped 78% to R1,8 billion as credit impairments fell 51%.
Corporate and Investment Bank’s headline earnings grew 16% to R3,9 billion led by a 24% increase in earnings growth by Corporate. Markets net revenue increased 17% on the back of strong growth in Fixed Income and Credit, Equities and Prime Services. CIB’s South African earnings grew 9% while Rest of Africa increased 38%.
Headline earnings from Wealth, Investment Management and Insurance (WIMI) decreased 3% to R1,4 billion. A decline in headline earnings from the Life Insurance business offset a modest increase in earnings from Wealth and Investment Management and the solid returns produced by Short-term Insurance and Fiduciary Services. WIMI’s headline earnings outside South Africa increased by 36%.
The Group’s earnings remain well diversified by business and product line. RBB accounted for 61% of Group headline earnings (excluding head office, eliminations and other central items) while CIB contributed 29% and WIMI 10%.