- 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.
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
- Credit impairments fell 10% to R6,3 billion, resulting in a 1,02% credit loss ratio from 1,20%.
Africa Group Limited’s Common Equity Tier 1 (CET1) of 11,9% remains
above regulatory requirements and our Board targets.
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:
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."
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.
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
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%.
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%.