Barclays African Unit Investment Push

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Dec. 11 (Bloomberg) –- Bloomberg’s Eleni Giokos reports on the multi-million dollar investment by Barclays African unit to upgrade its branches. She speaks to Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Market share in south africa.

They bought a 55% stake in the south african unit.

It plans to spend 160 million dollars on upgrading its branches.

Just like what we have seen in the u.k. and the u.s. they have fallen behind the curve, these to be top in the mortgage lending space in south africa.

It has not been a very aggressive lending space.

It is sitting at 4.9% relative to total lending.

It has been embarking on cleaning up.

How is it shaping up?

The unsecured lending rate is very exciting.

It is sitting at five percent, which is pretty high when you compare it to develop nations.

The prime lending rate is sitting at a .5%. -- 8.5%. they have targeted the low income earners.

Barclays has been pushing that prudence.

They are going to ensure they do not take too much risk on their books, but they want to add insurance.

By the end of 2/5 -- 2015, they hope to be the biggest banking stock in africa.

There was a time when consumers have little choice.

Across the board, there was very little competition, you would not get competitive rates.

Banking fees were so exorbitant in the country.

You started to see a lot of competition coming through.

When you compare share prices, everyone else has done badly.

It is indicative of what investors are looking for.

One barclays did this deal in south africa -- when barclays did this deal in south africa, not the focus for very many european banks -- barclays has a strong presence.

It bought a 55% stake, but then it sold its africa operations.

It is complex.

It is focused on africa as a whole as opposed to one territory.

This text has been automatically generated. It may not be 100% accurate.

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