Barclays
In 2005, Barclays’ operations in Zambia saw the first pay-off of a tough restructuring plan which brought the bank back to strong profitability and saw the business substantially overhauled. Net profits for the year were K35.8bn ($10.2m), sharply up on previous years.
“Barclays Bank underwent a restructuring programme between 2003 and 2005, involving the revision of the branch network and reviewing customer segments. The impact on the business was that a significant number of low-value customer accounts were closed. However, the business saw an increase in high-value prestige customers following an aggressive marketing campaign,” says managing director Danie Nel.
Strong commodity prices have also been a boon for Zambia and the banks in particular. Barclays was no exception.
“The surging copper price on the international market driven mainly by demand from China has seen the local currency appreciate against the major currencies by about 40% since November 2005. The appreciation has consequently increased foreign currency trading volumes with performance in the Treasury area hitting record levels. Barclays has also seen increased demand for leasing transactions for capital equipment from the mining companies aimed at increasing production. Ancillary industries are also emerging to service the mines,” notes Mr Nel.
