Recently voted best retail and corporate bank by International Business Magazine, Barclays Bank Zambia (BBZ) Plc revealed bullish earnings for the third quarter of 2019. This was according to quarterly prudential financials published in the local press.
BBZs year to date after tax earnings grew to K199.2 million (a 2.6% slow down from a year ago). Third quarter PAT jumped 220% to K95.8 million from K29.9 million supported by a solid interest income growth aligning with the aggressive asset booking strategy that the bank embarked on.
Read also: Barclays Zambia H1 credit book grew 60%, in record interest earnings
Total income (YTD) for the Absa Zambian subsidiary grew 8.5% to K921.8 million fueled by 37% levitation in interest income to just above a yard (billion Kwacha) the highest the market has recorded backed by strong growth in trading income lines. Barclays strongest points reside in its aggressive strategy to expand its credit book which has grown to K5.38 billion from just over K3.3 billion when Mizinga Melu took mantle. She has successfully and sustainably booked interest earnings which for a long time will cause profitability disruptions in the earnings race. The bank also had a good earnings margins from its investments in government securities leveraging off elevated yields on bills and bonds.
The Absa unit took third quarter impairments of K55.4 million pushing year to date credit provisions to K170.9 million slowing down the banks bottom line. BBZ operational posture portrays a steady, sustainable and prudent strategy that will continue to pay off. Our analysts qualify this performance as exceptional in the current economic environment.
The Zambia unit remains one of Absa Groups cash cows and shining example of opportunity in Africa post the Barclays Africa ‘divorce deal’ which continues to defy the odds when Barclays London lacked confidence in emerging markets a few years ago. Barclays performance earned it second place on the industry scoreboard studded with 18 financial institutions.
The Kwacha Arbitrageur