Friday, October 30, 2020

Barclays Bank could change name in three years

JOHANNESBURG, SOUTH AFRICA ÔÇô Whilst a decision to change names has not been made yet, the move by one of its key shareholders, Barclays PLC to sell the majority of its shares in Barclays Africa Group could see the bank getting some new identity within the next two to three years, group executives have said. 

This would mean Barclays Bank Botswana could be one of the affected by the possible changes. A change in name is expected to happen shortly after a regulatory deconsolidation which is expected to take place when Barclays PLC’s ownership of Barclays Africa falls under 15 percent. The change in ownership structure means the Johannesburg-based banker would no longer be reliant on the UK-based Barclays PLC for any critical services. 

Barclays Africa Group Limited Deputy Chief Executive Officer responsible for the rest of Africa business, Peter Matlare, said here on Friday that the sell down process which started in March 2016 marked the “evolution as a stand-alone pan African financial services group, committed to Africa”. 

Barclays PLC plans to reduce its interest in Barclays Africa Group to a non-controlling stake in the next two to three years with 12.2 percent already sold in March 2016 reducing the shareholding to 50.1 percent. 

In February 2017, the two parties, Barclays PLC and Barclays Africa Group announced agreement on terms of separation part which related to “change of identity” including brand name. 

“We still have ample time, being two to three years to make that decision relating to change of name. The focus for now is that we ensure that the separation of the two businesses proceed in an orderly manner, with no unnecessary impact t the business operations or its stakeholders,” Matlare said on Friday. 

He further stated that the group’s immediate attention was diverted towards assuring its customers that despite the changes the business will remain strong since there will be no change of structure.

“We are proactively looking to grow the revenue and earnings and contribution made by our markets outside South Africa to the group, because there is strength in geographic diversity,” Matlare said. 

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