The Deputy CEO and Group Financial Director of Barclays Africa, David Hodnett, has downplayed any significant impact the exit of Barclays Bank Plc will have on the bank’s Africa operations.
[contextly_sidebar id=”7SMMqjVmsSdrU8rUM1nQ02a7kESOwad9″]It follows concerns that the exit of Barclays Bank Plc will have a toll on the financial strength and operations of Barclays Africa since it owes majority of shares.
Barclays Plc in February this year announced its decision to withdraw its 62.3 percent share in the Bank’s Africa operations.
The move was among other things influenced by some regulatory burdens specific and particular to Barclays PLC as a UK headquartered and globally significant financial institution.
The regulations reportedly, decreased significantly, Barclay’s Africa Group Limited’s standalone returns for Barclays PLC.
But speaking in an exclusive interview with Citi Business News, David Hodnett reiterated that Barclays Africa still has the capacity to operate to meet the demands of its clients despite the exit.
“This will have zero impact … and we are looking at coming out to roll out our internal banc assurance operations. Our retailing business in banking operations is very limited and as individuals, you look at the kind of branches and technology you roll out like ATMs and obviously they ought to be better … Barclays still needs to operate in Africa, the customers are still going to operate in Africa, so it will make perfect sense for us that Barclays continues.” He stated.
The Bank’s CEO, Jes Staley confirmed the decision to pull out, to CNBC in February this year.
At the time of announcing this decision, the bank’s shares in Barclays Africa, which is based in South Africa and also operates in nine other countries, dropped to 5.5 percent down from the 6.8 percent drop it had recorded the day before.
The development caused a stir among some customers of the bank as speculation were rife over a possible take-over.
But a statement signed by the bank’s Africa Group Chief Executive, Maria Ramos said, “Any announcement relating to Barclays PLC’s shareholding in Barclays Africa, does not impact the shareholding and ownership of these operations.”
By: Pius Amihere Eduku/citibusinessnews.com/Ghana