Barclays Receives Permission to Deconsolidate African Business
By Adam Clark
Barclays PLC (BARC.LN) said Friday that it has received regulatory permission to fully deconsolidate its African business, strengthening its capital position and bringing it a step nearer to exiting its presence on the continent.
The U.K.-based lender said the Bank of England has confirmed it won't object to Barclays deconsolidating Barclays Africa Group Ltd. for regulatory purposes, effective from June 30.
Barclays said its 14.9% holding in Barclays Africa will now be treated as a 250% risk-weighted asset. The deconsolidation will lead to a pro forma 10 basis points boost to its Common Equity Tier 1 ratio, a measure of balance-sheet strength, which stood at 12.7% as of March 31.
In 2016, Chief Executive Jes Staley announced Barclays' intended exit from over a century of business in Africa, seeking to raise funds to invest in its focus on the U.K. and U.S. On Monday, The Wall Street Journal reported that Barclays is considering further expansion in the U.S. retail-banking sector.
Write to Adam Clark at email@example.com; @AdamDowJones
(END) Dow Jones Newswires
July 20, 2018 05:34 ET (09:34 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.