Barclays seen lifting profits

JOHANNESBURG – Barclays Plc’s acquisition of a majority stake in Absa will enhance earnings growth potential at South Africa’s biggest consumer bank, the Johannesburg-based group said yesterday.

Absa said in its annual report that the move by the British bank to take a controlling stake would lead to clients being offered a broader range of services and products. The group said one of its strategies was to expand its wholesale and African operations to diversify earnings streams.Barclays has won shareholder, regulatory and court approval to buy a majority stake in Absa for around 33 billion rand and the transaction is due to be settled on July 27.It will mark a return to retail banking in South Africa by Britain’s third-biggest lender after an 18-year absence.The annual report showed that Absa executive directors were paid some 24,53 million rand in performance bonuses for the year ending March 31 2005 – almost double the 13,47 million rand the group paid them in the previous financial year.- Nampa-ReutersThe group said one of its strategies was to expand its wholesale and African operations to diversify earnings streams.Barclays has won shareholder, regulatory and court approval to buy a majority stake in Absa for around 33 billion rand and the transaction is due to be settled on July 27.It will mark a return to retail banking in South Africa by Britain’s third-biggest lender after an 18-year absence.The annual report showed that Absa executive directors were paid some 24,53 million rand in performance bonuses for the year ending March 31 2005 – almost double the 13,47 million rand the group paid them in the previous financial year.- Nampa-Reuters