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Over 3 percent was shaved off Barclays Zimbabwe Ltd’s (BARC.zw) share price overnight following Tuesday’s confusing announcement of an imminent pull-out by its United Kingdom parent, Barclays plc which owns 68 %, over clashing ideals and competition with South Africa-based Barclays Africa.
Barclays Zimbabwe led the list of losers Thursday and did not recover on Friday.
Barclays Zimbabwe, once ranked ‘Zimbabwe’s largest agricultural bank’ has lost considerable business due to disruptions in commercial agriculture because of farm invasions triggered by president Robert Mugabe’s loss of a constitutional referendum in 2000. The on-going expulsion of white farmers by Zanu PF militants has led to the collapse of the sector, which has also brought down manufacturing. Uncertainty in mining, tourism and transport also threatens the bank’s remaining sources of business. The situation has been worsened by a liquidity crunch blamed on political instability arising from fears about 92 year-old Mugabe’s health and his refusal to name a successor.
However, Barclays Zimbabwe George Guvamatanga assured investors that there would be no major losses for investors as the banking group’s balance sheet remained strong.
BARC.zw | Audited results for FY ended 31 Dec 2015:
Financial Highlights: Net interest income: $ 16 627 000; Total income: $ 46 190 000; Net operating income: $ 44 512 000; Profit before tax: $ 5 765 000; Profit for the year: $ 3 880 000; Dividend: Nil; Total comprehensive income for the year: $ 4 822 000; Basic earnings per share: 0.18 US cents; Diluted earnings per share: 0.18 US cents; (Source: www.zimbabwe-stock-exchange.com)
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