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Strong first half results for Barclays |
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Barclays Bank of Botswana has announced strong first half growth, led by continued strong treasury and retail performance. The Banks financial results for the first half of 2007 indicate that the total income increased by 24% to P396 million. Basic earnings per share are 17thebe, whilst profit before tax grew to P177 million from P165 million reported at the same time last year.
Highlights of the banks financial results include a strong income performance reflecting increased business growth, with an overall 27% increase in interest income. The Bank has also realised an excellent performance in foreign exchange income. Operational expenses increased by 44% though, this is a result of significant investment to expand the retail business, the Bank officials said.
The Bank has proposed a dividend of 9 thebe per share for the half year. The balance sheet also shows positive results with the total assets shooting up by 36%, compared to December 2006. Barclays also recorded a growth in operating profit. In June 2006, it stood at P173 million but this year it is up to P187 million, indicating an 8% growth.
Commenting on the results, the Managing Director of Barclays Bank Botswana, Mr Thuli Johnson said the results reflect increased confidence in Botswana. He said they also mirror the significant investment made by the Bank in the first half of the year. Johnson noted that a branch expansion programme, increased investment in people and a new direct sales channel, investment in a call centre as well as significant spend in marketing and advertising have led to a higher negative relationship between income and costs.
This investment has increased our overall footprint across the country by 11 branches, giving access to banking to more of the population, he said. He said the investment is already bearing fruit and the second half results are expected to reflect this. Johnson said his Bank was on course to deliver an outstanding year whilst they make investments in distribution, people and customer service.
Johnson is happy that his Bank is also making strides at Group level. At Group level Barclays PLC in London announced strong financial results reflecting the successful execution strategy with income up 9% to 11, 902 million. Income after tax also increased by 12% to 4.101 million and earnings per share rose by 14% to 41.4p.
The dividend per share was up by 11.5 % to 41.4p and the economic profit rose by 14% to 1,609 million. Group Chief Executive Officer, John Varley observed that the Bank has made good progress on all key strategic priorities and delivered another strong set of results for shareholders.Double digit growth earnings and dividends reflect an outstanding performance, good profit growth, and an improvement in unsecured impairment and strong investment across the business.
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